Question

Malik is considering investing $900 in a certain company. Financial advisors forecast that there is a 30% chance that the stock will increase in value by 150%, and a 50% chance that he will lose his initial investment. Determine if Malik should make the investment, and find the expected value of the investment.

A.
Yes, the expected value is –$45.
B.
No, the expected value is –$45.
C.
Yes, the expected value is $855.
D.
No, the expected value is $855.