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An entrepreneur has a project that requires a $10,000 initial investment. The project is risky and will produce revenue of $16,000 with probability 0.75 and revenue of $12,000 with probability 0.25. If the entrepreneur invests, then what is her expected revenue, minus the initial investment?

A. $5,000

B. $4,500

C. $8,000

D. $1,350

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M945000

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