Answer:
I will invest in Project A, as its Expected value is higher than the project B.
Explanation:
Project A
Return Probability Expected Value
$150 0.1 $150 x 0.1 = $15
$75 0.9 $75 x 0.9 = $67.5
Total Expected Value = $15 + $67.5 = $82.5
Project B
Return Probability Expected Value
$110 0.2 $110 x 0.2 = $22
$65 0.8 $65 x 0.8 = $52
Total Expected Value = $22 + $52 = $74
The Expected return of Project A is higher, I will invest in the Project A.
