What is the expected value of an investment?

Question

A) is lower the higher the risk.

B) is the sum of the probability multiplied by the payoff of each of the possible payoffs.

C) cannot be priced.

D) are benchmarks against which quantifiable risks can be assessed

Shahbaz Hayder · Answer

Yes, Option B is the right answer.

Frank Mwansa · Answer

B.) is the sum of the probability multiplied by the payoff of each of the possible payoffs

Shazia Anees · Answer

option b===================

Ahmed Alkhateb · Answer

I agree, B is the correct answer for the question

Sultan Alghamdi · Answer

The correct answer is B.

good luck

SREEJU APPINI · Answer

the expected value (EV) of a random variable is the weighted average of all possible values a random variable can take on.