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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 the investment is expected to generate a payoff of $ million. In the bull case scenario, the payoff is projected to be $ million, while in the bear case scenario, the payoff is expected to be a loss of $ million. The bull and bear cases are assigned equal probabilities. Calculate the expected payoff of the investment
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