Mme. Giselle's boutique in Cleveland, Ohio is planning to sell a Parisian frock. If the public view it as being the latest style, the frocks will be worth $12,000. However, if the frocks are viewed as passe, they will be worth only $3,000. If the probability that they are stylish is 10%, what is the expected value of the frocks? The expected value of the frocks (EV) is EV-$ (Enter your response rounded to two decimal places.)

Mme. Giselle's boutique in Cleveland, Ohio is planning to sell a Parisian frock. If the public view it as being the latest style, the frocks will be worth $12,000. However, if the frocks are viewed as passe, they will be worth only $3,000. If the probability that they are stylish is 10%, what is the expected value of the frocks? The expected value of the frocks (EV) is EV-$ (Enter your response rounded to two decimal places.)

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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am. 133.
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