Question

in a proposed bussiness venture a bussiness woman estimates there is a 60 percent chance she will make 62,000 and a 40 percent chance she will loose 51,000. determine her expected value

Answer 1

62,000(0.60)-51,000(0.40)=16,800, similar to weighted average of the probability. has this got to do with real options?

Answer 2

Err. I dont really want to answer the question as it appears to be a homework problem but the answer by gloomberg is wrong.

Answer 3

Actually it isnt wrong ... i misread the question.