Posted by **Julie** on Sunday, February 1, 2009 at 8:35pm.

There are three investment plans for your consideration. Each plan calls for an investment of $25,000 and the return will be one year later. Plan A will return $27,500. Plan B will return $27,000 or $28,000 with probabilities of 0.4 and 0.6, respectively. Plan C will return $24,000, $27,000, or $33,000 with probabilities of 0.2, 0.5, and 0.3, respectively. If your objective is to maximize the expected return, which plan should you choose?

## Answer This Question

## Related Questions

- finance - Under normal conditions (70% probability), Financing Plan A will ...
- lim - I'm completely drawing a blank on how to do this. A woman has $500,000 ...
- college algebra - I'm completely drawing a blank on how to do this. A woman has...
- Probability and Linear Math - SET UP BUT DO NOT SOLVE THE FOLLOWING LINEAR ...
- Economics - A $90,000 investment is made. Over a 5 year period, a return of $30,...
- 8 - 8. You invested $2,000 in the stock market one year ago. Today, the ...
- Math - A women has $500,000 invested in two rental properties. One yields an ...
- business - A women has $500,000 invested in two rental properties. One yields an...
- Kennedy king finance - 8. You invested $2,000 in the stock market one year ago...
- Kennedy king finance - 8. You invested $2,000 in the stock market one year ago. ...

More Related Questions