So malik is considering investing $900 in a certain company. financial advisors forecast that there is a 30% chance that the stock will increase in value by 150%, and a 50% chance that he will lose his initial investment. determine if malik should make the investment, and find the expected value of the investment.

B. No, the expected value is –$45

Step-by-step explanation:

Define three events  

A = stock increases in value by 150%  

B = stock loses value  

C = no change in stock value  

Probabilitlies  

P(A) = 0.30  

P(B) = 0.50  

P(C) = 0.20  

Net Value  

V(A) = 1.5*900 = 1350  

V(B) = -900  

V(C) = 0  

Expected value  

E(X) = P(A)*V(A)+P(B)*V(B)+P(C)*V(C)  

E(X) = 0.3*1350 + 0.5*(-900) + 0.2*0  

E(X) = -45  

Malik is expected to lose about 45 dollars on average  

He should not make the investment

honestly bro aint no one got time to answer these dumb question just do it p***y

step-by-step explanation: