=+36. Mutual fund investing. An investor is considering how to invest her money. She has a choice

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=+36. Mutual fund investing. An investor is considering how to invest her money. She has a choice between two mutual funds: a fund that invests in biotechnological firms and a fund that invests in infrastructure. The payoff (profit) after one year for these investments depends on the state of the economy.

Economy Improves

(0.25)

Economy Declines

(0.75)

Biotechnology Fund $3000 $500 Infrastructure Fund $5500 –$1000

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Business Statistics Plus Pearson Mylab Statistics With Pearson Etext

ISBN: 978-1292243726

3rd Edition

Authors: Norean R Sharpe ,Richard D De Veaux ,Paul Velleman

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