A venture capitalist, willing to invest $1,000,000, has three investments to choose from. The first investment, a software company, has a 9% chance of returning $11,000,000 profit, a 25% chance of returning $1,000,000 profit, and a 66% chance of losing the million dollars. The second company, a hardware company, has a 15% chance of returning $4,000,000 profit, a 20% chance of returning $2,000,000 profit, and a 65% chance of losing the million dollars. The third company, a biotech firm, has a 7% chance of returning $9,000,000 profit, a 34% of no profit or loss, and a 59% chance of losing the million dollars.
Order the expected values from smallest to largest.
- third, second, first
- second, third, first
- second, first, third
- first, second, third
- third, first, second
- first, third, second