Becky is looking to invest her money with a brokerage, after doing some research, she finds...

 

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Becky is looking to invest her money with a brokerage, after doing some research, she finds data on how each of the brokerages has performed historically when someone invests $10,000 with either brokerage for 5 years. The data shows that for brokerage A an initial investment of $10,000 matures to $8,000 with P = 0.3 and $25,000 with P=0.7. For brokerage B an initial investment of $10,000 matures to $2,000 with P = 0.1, $15,000 with P = 0.8 and $40,000 with P = 0.1. Assume that the brokerages will perform the same in the future as they have in the past. Find the Expected value of investing $10,000 for 5 years with brokerage A (The amount of money in the account at the end of the period, not the return on the $10,000) 20,000 19,000 12,280 25,300 Becky is looking to invest her money with a brokerage, after doing some research, she finds data on how each of the brokerages has performed historically when someone invests $10,000 with either brokerage for 5 years. The data shows that for brokerage A an initial investment of $10,000 matures to $8,000 with P = 0.3 and $25,000 with P=0.7. For brokerage B an initial investment of $10,000 matures to $2,000 with P = 0.1, $15,000 with P = 0.8 and $40,000 with P = 0.1. Assume that the brokerages will perform the same in the future as they have in the past. Find the Expected value of investing $10,000 for 5 years with brokerage A (The amount of money in the account at the end of the period, not the return on the $10,000) 20,000 19,000 12,280 25,300

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