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A company can invest in new equipment. There are four possible outcomes, with their respective probabilities, as detailed in the following table. Present Value Probability
A company can invest in new equipment. There are four possible outcomes, with their respective
probabilities, as detailed in the following table.
| Present Value | Probability |
| $7,000 | 0.20 |
| $8,500 | 0.35 |
| $10,500 | 0.30 |
| $12,000 | 0.15 |
- Calculate the expected value of the present value of the investment
- Calculate investment risk
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The Worlds First Stock Exchange
Authors: Lodewijk Petram
1st Edition
0231163789,0231537328
