Jean wants to invest a gift of $4,250 in the stock market. A broker suggests two companies, Solar Solutions (SOLR) and Frontline Medical (FLMD). He provides the probabilities for an annual return on
$4,250 based on their historical gains:
SOLR: 50% chance of $1,000 gain, 35% chance of $200 gain, 15% chance of $600 loss
FLMD: 80% chance of $750 gain, 20% chance of $100 loss
Which is the best analysis of these investments?

B

Step-by-step explanation:

Im doing dis right now on iready test diagnostics.

T

R

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T

Percentage solution with steps:

Step 1: We make the assumption that 150 is 100% since it is our output value.

Step 2: We next represent the value we seek with $x$x.

Step 3: From step 1, it follows that $100\%=150$100%=150.

Step 4: In the same vein, $x\%=52.5$x%=52.5.

Step 5: This gives us a pair of simple equations:

$100\%=150(1)$100%=150(1).

$x\%=52.5(2)$x%=52.5(2).

Step 6: By simply dividing equation 1 by equation 2 and taking note of the fact that both the LHS
(left hand side) of both equations have the same unit (%); we have

$\frac{100\%}{x\%}=\frac{150}{52.5}$
100%
x%=
150
52.5

Step 7: Taking the inverse (or reciprocal) of both sides yields

$\frac{x\%}{100\%}=\frac{52.5}{150}$
x%
100%=
52.5
150

$\Rightarrow x=35\%$⇒x=35%

Therefore, $52.5$52.5 is $35\%$35% of $150$150.