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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 passed! I did not get a chance to tell you before the exam - but your site was excellent. I will definitely take it next year for Level II.
Tamara Schultz
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.