Question: E (y1) = .8 [240 (1 + i) 100] +.2 * [100 (1 + i) 100] = E (y2) = .2 [580 (1 + i)

E (y1) = .8 [240 (1 + i) 100] +.2 * [100 (1 + i) 100] =

E (y2) = .2 [580 (1 + i) 100] + .8 * [60 (1 + i) 100] =

These are examples of solved ones:

E (y1) = .8 [250 (1 + i) 100] +.2 * [100 (1 + i) 100] = 120 - 100i

E (y2) = .2 [600 (1 + i) 100] + .8 * [60 (1 + i) 100] = 68 - 100 i

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