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A house up for auction can be worth either $500 or $1,000 with 50-50 probability. The other bidder knows the true value; you do not.

A house up for auction can be worth either $500 or $1,000 with 50-50 probability. The other bidder knows the true value; you do not. If you bid for the house in an auction, what should you bid? If you bid $750, what is your expected rate of return?

Please do not copy from Chegg. Otherwise i have to report the answer

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