Question

alessi has the option of investing in one of two investments. both investments require alessi to commit $250 of her available funds for a period of two years. after two years, the first investment is expected to be worth anywhere from $200 to $300, meaning she may gain or lose up to $50 depending on market conditions. the second investment will almost certainly be worth $260 after two years, meaning alessi will almost certainly earn $10 on the investment. alessi would choose the first investment option if she prefers(1 point)

Answer 1

Alessi should choose the second investment option because it has a higher probability of gaining money compared to the first option.

Step-by-step explanation:

To determine which investment option Alessi should choose, we need to compare the potential gains and losses of each option. The first investment has a potential gain of $50 and a potential loss of $50, while the second investment has a guaranteed profit of $10. Since Alessi would choose the first investment option if she prefers _______ (fill in the blank with the option that will give her the highest probability of gaining money), we can conclude that she should choose the second investment option because it has a higher probability of gaining money compared to the first option.