An investment pays $1,200 a quarter of the time; $1,000 half of the time; and $800 a quarter of the time. Its expected value and variance respectively are:

A. $1,000; 20,000 dollars2
B. $1,000; 40,000 dollars2
C. $1,000; 80,000 dollars2
D. $1,050; 20,000 dollars2


Answer: A

Economics

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