An investment has the potential of eaming you $5000 at a 15 percent probability, $3000 at a 45 percent probability, and $2000 at a 40 percent probability, based on the performance of the stock market. The expected value of the investment is $ (round your answer to the nearest penny)

An investment has the potential of eaming you $5000 at a 15 percent probability, $3000 at a 45 percent probability, and $2000 at a 40 percent probability, based on the performance of the stock market. The expected value of the investment is $ (round your answer to the nearest penny)

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter8: Analysis Of Risk And Return

Section: Chapter Questions

Problem 14P

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An investment has the potential of eaming you $5000 at a 15 percent probability, $3000 at a 45 percent probability, and $2000 at a 40 percent
probability, based on the performance of the stock market.
The expected value of the investment is $ (round your answer to the nearest penny)

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