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An economic Survey has projected that there is a 10 percent chance the Indian economy will slide into recession. An electronics company is thinking of
An economic Survey has projected that there is a 10 percent chance the Indian economy will slide into recession. An electronics company is thinking of launching a new LED TV that will yield a profit of Rs. 100 crores if there is no slowdown in the economy; otherwise, the company could lose up to Rs. 300 crores in the absence of demand. What is the expected profit from launching the new product? What is the risk involved in the launch measured in terms of variance?
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