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Expected value is calculated by multiplying each possible outcome by its probability and summing the results. The stock with the higher expected value is chosen as the better investment.
Conditions: Probabilities of all outcomes sum to 1.; Outcomes and probabilities are known for each stock.
Expected value is calculated by multiplying each possible outcome by its probability and summing the results. The stock with the higher expected value is chosen as the better investment.
Conditions: Probabilities of all outcomes sum to 1.; Outcomes and probabilities are known for each stock.