John wants to make an investment and he is trying to decide which investment would be his
best option. Use what you know about Expected Value to evaluate the two investments below:
Investment A: Investment B

15% chance you lose $80,000 25% chance you lose $20,000
75% chance you break even 60% chance you break even
10% chance you make $200,000 15% chance you make $80,000
2
1. Calculate the Expected Value of Investment A (Show your Work)
2. Calculate the Expected Value of Investment B (Show your Work)