topic: probability and decision making Youre given two investment options: Option A: You invest everything in Posh Spice. You have a 7%chance to earn 90% of your investment, a 10% chance of losing10% of it, and an 83% chance that you will neither win nor lose. Option B: You invest everything in Trust Bank. You’re sure to get7% interest, and there’s no risk of losing money. Which will you go for?

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
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topic: probability and decision making

Youre given two investment options:

Option A: You invest everything in Posh Spice. You have a 7%chance to earn 90% of your investment, a 10% chance of losing10% of it, and an 83% chance that you will neither win nor lose.

Option B: You invest everything in Trust Bank. You’re sure to get7% interest, and there’s no risk of losing money.

Which will you go for?

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