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An investment. counselor calls with a hot stock tip. He believes that if the economy remains strong. the investment will result in a prot of
An investment. counselor calls with a hot stock tip. He believes that if the economy remains strong. the investment will result in a prot of $40,000. If the economy grows at a moderate pace' the investment will result in a prot of 520000. However. if the economy goes into recession' the investment will result in a loss of $40,000. You contad an economist who believes there is a 30% probability the economy will remain strong' a 60% probability the economy will grow at a moderate pace. and a 10% probability the economy will slip into recession. What. is the expected prot from this investment? The expected prot is 5 . [Type an integer or a decimal.)
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