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Order the expected values from smallest to largest.

Order the expected values from smallest to largest.

Essentials Of Investments
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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A venture capitalist, willing to invest $1,000,000, has three investments to choose from. The first investment, a software company, has a 7% chance of returning $4,000,000 profit, a 23% chance of returning $1,500,000 profit, and a 70% chance of losing the million dollars. The second company, a hardware company, has a 8% chance of returning $4,000,000 profit, a 26% chance of returning $1,500,000 profit, and a 66% chance of losing the million dollars. The third company, a biotech firm, has a 8% chance of returning $8,000,000 profit, a 21% of no profit or loss, and a 71% chance of losing the million dollars. Order the expected values from smallest to largest. first, second, third second, third, first O third, second, first Osecond, first, third third, first, second first, third, second
Transcribed Image Text:A venture capitalist, willing to invest $1,000,000, has three investments to choose from. The first investment, a software company, has a 7% chance of returning $4,000,000 profit, a 23% chance of returning $1,500,000 profit, and a 70% chance of losing the million dollars. The second company, a hardware company, has a 8% chance of returning $4,000,000 profit, a 26% chance of returning $1,500,000 profit, and a 66% chance of losing the million dollars. The third company, a biotech firm, has a 8% chance of returning $8,000,000 profit, a 21% of no profit or loss, and a 71% chance of losing the million dollars. Order the expected values from smallest to largest. first, second, third second, third, first O third, second, first Osecond, first, third third, first, second first, third, second
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