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A startup is evaluating a potential investment opportunity. Under the base case scenario, which is assigned a probability of 2 / 3 , the investment

A startup is evaluating a potential investment opportunity. Under the base case scenario, which is assigned a probability of 2/3, the investment is expected to generate a payoff of $5 million. In the bull case scenario, the payoff is projected to be $10 million, while in the bear case scenario, the payoff is expected to be a loss of $2 million. The bull and bear cases are assigned equal probabilities. Calculate the expected payoff of the investment

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