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A investment company has an asset A that will produce a cash flow of $5,500 with prob. 0.3 and $8,800 with prob. 0.7. They also
A investment company has an asset A that will produce a cash flow of $5,500 with prob. 0.3 and $8,800 with prob. 0.7. They also own an asset B that pays $1,550 with prob. 0.5 and $3,500 with prob. 0.50. In this case, the probability that the company will earn a total payoff of $10,350 from their portfolio of assets is _____, and the expected value of this portfolio is _____.
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