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Basic Question 0 of 7
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 3
| User | Comment |
|---|---|
| wundac | much more logical with real numbers |
| khalifa92 | then read the example in LOS |
| thevinu | Weighted Avg - Cost |
You have a wonderful website and definitely should take some credit for your members' outstanding grades.
Colin Sampaleanu
Learning Outcome Statements
explain the relationship between normal and lognormal distributions and why the lognormal distribution is used to model asset prices when using continuously compounded asset returns
CFA® 2025 Level I Curriculum, Volume 1, Module 6.