f i invest in a certain company, there's a 40 percent chance i'll make $1,000, and a 60 percent chance i'll lose $500. those are the only two possibilities. what's the expected monetary value of investing in the company? (keep in mind that losing money has negative monetary value.) give your answer as a whole number without the dollar sign.

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17-12-2022
Business

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f i invest in a certain company, there's a 40 percent chance i'll make $1,000, and a 60 percent chance i'll lose $500. those are the only two possibilities. what's the expected monetary value of investing in the company? (keep in mind that losing money has negative monetary value.) give your answer as a whole number without the dollar sign.

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TiyashaNaskar TiyashaNaskar · Answer 1 · 2022-12-25T06:05:45+01:00

Monetary value is the amount of money that is assigned to an item or asset. The value of money is determined by factors such as supply and demand, inflation, and economic stability.

What is Monetary value ?

The monetary value of a good or service is the amount of money it is worth. Market forces such as supply and demand typically determine it. Monetary value is typically expressed in terms of money in economics, but it can also be expressed in terms of goods or services. Monetary value is typically expressed in terms of a standard unit of currency, such as the US dollar, Euro, or Japanese yen.

The expected monetary value of investing in the company is 250.

This is calculated by taking the 40% chance of making 1,000

(40% x 1,000 = 400)

and adding it to the 60% chance of losing 500

(60% x -500 = -300).

400 + -300 = 100.

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