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Expected value of the investment's payoff

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You have invested in a project that has the following payoff schedule:

Payoff Probability of Occurrence
$40 .15
$50 .20
$60 .30
$70 .30
$80 .05

What is the expected value of the investment's payoff? (Round to the nearest $1)

A) $70
B) $60
C) $59
D) $65

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The solution explains how to calculate the expected value of the investment's payoff.

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