Risk vs. Reward
Example:
If an investment has a 30% chance of doubling your money and a 70% chance of losing half, what is the expected outcome?
Formula:
Expected Value = P(gain) x gain + P(loss) x loss + ...
Scenario 1:
Probability (%):
Outcome:
Scenario 2:
Probability (%):
Outcome:
Scenario 3:
Probability (%):
Outcome:
Scenario 4:
Probability (%):
Outcome:
Scenario 5:
Probability (%):
Outcome:
Calculate
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