The probability of a recession is 0.3, the probability of normal growth is 0.4 and the probability
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The probability of a recession is 0.3, the probability of normal growth is 0.4 and the probability of a boom is 0.3. The payoff in the event of a recession is $200, in the event of normal growth is $300 and in the event of boom is $600. What is the expected payoff?
a. $260
b. $360
c. $480
d. None of the above
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Related Book For
Stock Markets And Corporate Finance A Primer
ISBN: 9781800611474,9781800611498
1st Edition
Authors: Michael Dempsey
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