
Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Mr. John is watching an old game show rerun on television called Let’s Make a
Deal in which the contestant chooses a prize behind one of two curtains. One of the
curtains will yield a gag prize worth Rs.14,700/-, and the other will give a car worth Rs.
63,600. The game show has placed a subliminal message on the curtain containing the
gag prize, which makes the probability of choosing the gag prize equal to 60 percent.
What is the expected value of the selection?
(a) Rs. 24,260; (b) Rs. 34,260; (c) Rs. 43,620; (d) Rs. 32,620; (e) Rs. 26,420
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