A venture capitalist, willing to invest $1,000,000, has three investments to choose from. The first investment, a software company, has a 10% chance of returning $4,000,000 profit, a 23% chance of...


A venture capitalist, willing to invest $1,000,000, has three investments to choose from. The first investment, a software company, has a 10% chance of returning $4,000,000 profit, a 23% chance of returning $2,500,000 profit, and a 67% chance of losing the million dollars. The second company, a hardware company, has a 5% chance of returning $4,000,000 profit, a 29% chance of returning $2,500,000 profit, and a 66% chance of losing the million dollars. The third company, a biotech firm, has a 5% chance of returning $6,000,000 profit, a 26% of no profit or loss, and a 69% chance of losing the million dollars.


Order the expected values from smallest to largest.



Jun 08, 2022
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