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A risk neutral investor in an uncertain environment is facing the following payoffs and probabilities for an investment project: Outcome Pr(outcome) Payoff Strong economic growth
A risk neutral investor in an uncertain environment is facing the following payoffs and probabilities for an investment project: Outcome Pr(outcome) Payoff Strong economic growth 0.30 $155000 Weak economic growth 0.55 $80000 Negative economic growth (recession) 0.15 $15000 What is the most this investor is willing to invest in such a project? The investor would be willing to invest at most $ . (round your answer to the nearest penny)
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