A venture capitalist, willing to invest $1,000,000, has thre…
A venture capitalist, willing to invest $1,000,000, has three investments to choose from. The first investment, a software company, has a 20% chance of returning $5,000,000 profit, a 30% chance of returning $1,000,000 profit, and a 50% chance of losing the million dollars. The second company, a hardware company, has a 10% chance of returning $3,000,000 profit, a 30% chance of returning $1,000,000 profit, and a 60% chance of losing the million dollars. The third company, a biotech firm, has a 10% chance of returning $6,000,000 profit, a 80% of no profit or loss, and a 10% chance of losing the million dollars. Order the expected values from smallest to largest. Video on Expected Value Hint Textbook Pages