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19) Big Cure and Little Cure are both pharmaceutical companies. Big Cure presently has a potential blockbuster drug before the Food and Drug Administration (FDA)

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19) Big Cure and Little Cure are both pharmaceutical companies. Big Cure presently has a potential "blockbuster" drug before the Food and Drug Administration (FDA) waiting for approval. If approved, Big Cure's blockbuster drug will produce $1 billion in net income for Big Cure. Little Cure has ten separate, less important drugs before the FDA waiting for approval. If approved, each of Little Cure's drugs would produce $100 million in net income for Little Cure. The probability of the FDA approving a drug is 50%. (4 marks) a) What is the expected payoff for Big Cure's Blockbuster drug? b) What is the expected payoff for Little Cure's ten drugs? c) Which company do you believe is most risky? Explain your

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