EV = 50% x $9 + 50% x (-3)
EV = $4.50 - 1.50
EV = $3
EV (Expected Value)
Probability (EVENT 1) X Payoff (EVENT 1)
+ Probability (EVENT 2) X PAYOFF (EVENT 2)
+ PROBABILITY (EVENT 3) X PAYOFF (EVENT 3)
EV = 50% * $6.3 + 50% x (-3)
EV = $3.15 - 1.5
EV = $1.65
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