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Basic Question 1 of 6
There are ten marbles in a box: one red, three yellow, and six blue. You pick one marble from the box for 75 cents. You win $5 if you pick a red marble, $1 if you pick a yellow marble, and nothing if you pick a blue marble. If you play the game once, what is your expected net gain?
B. $1.25
C. $0.05
A. $0.35
B. $1.25
C. $0.05
User Contributed Comments 2
| User | Comment |
|---|---|
| wundac | much more logical with real numbers |
| khalifa92 | then read the example in LOS |
I was very pleased with your notes and question bank. I especially like the mock exams because it helped to pull everything together.
Martin Rockenfeldt
Learning Outcome Statements
calculate expected values, variances, and standard deviations and demonstrate their application to investment problems
CFA® 2024 Level I Curriculum, Volume 1, Module 4.