Shane holds wealth worth $10,000 . He considers investing it equally in two gambles one of which has a probability of 0.6 to yield a return of 10% and the other has a probability of 0.4 to yield a return of 20%. What will be Shane's total expected return from the two gambles?
a. $1,000
b. $700
c. $500
d. $900
e. $1,100
b
Economics
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