Talk:Risk neutral
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Can someone answer me this question:
You are offered a lottery with the following prizes: £100, £50, or £10. The probabilities of each prize are respectively: 0.1, 0.2, or 0.7.
What sum of money would a risk neutral individual pay for this lottery ticket?
.1*100 + .2*50 + .7*10 = 10+10+7 = 27 Wolfman 22:57, 21 Nov 2004 (UTC)