You begin year 1 with $500. At the beginning of each year, you put half of your

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You begin year 1 with $500. At the beginning of each year, you put half of your money under your mattress and invest the other half in Whitewater stock. During each year, there is a 50% chance that the Whitewater stock will double, and there is a 50% chance that you will lose half of your investment. To illustrate, if the stock doubles during the first year, you will have $375 under the mattress and $375 invested in Whitewater during year

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Practical Management Science, Revised

ISBN: 9781118373439

3rd Edition

Authors: Wayne L Winston, S. Christian Albright

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