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5 part of their investment strategy, the Carringtons have decided to put $100,000 into stock market investments and also into purchasing cecious metals. The performance

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5 part of their investment strategy, the Carringtons have decided to put $100,000 into stock market investments and also into purchasing cecious metals. The performance of the investments depends on the state of the economy in the next year. In an expanding economy, it is cpected that their stock market investment will outperform their investment in precious metals, whereas an economic recession will have ecisely the opposite effect. Suppose the following payoff matrix gives the expected percentage increase or decrease in the value of each vestment for each state of the economy. (a) Determine the optimal investment strategy for the Carringtons' investment of $100,000. (Round your answers to the nearest dollar.) stocks commodities 5 (b) What profit can the Carringtons expect to make on their investments over the year if they use their optimal investment strategy? (Round your answer to the nearest dollar.) $

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