Investment opportunities over three possible scenarios


Paul wants to choose one of the two investment opportunities over three possible scenarios. Investment 1 will yield a return of $10,000 in scenario 1, Scenario 2 $2,000 and Scenario 3 -$5,000. Investment 2 Scenario 1 will yield a return of $6,000, Scenario 2 $4,000, and Scenario 0. The probability for Scenario 1 is 0.2, Scenario 2 0.3, and Scenario 3 0.5. Which investment should Paul choose to maximizes Expected Money Value?

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Finance Basics: Investment opportunities over three possible scenarios
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