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An investment counselor calls you with a hot stock tip. She believes that if the economy remains strong, the investment in the stock will result
An investment counselor calls you with a hot stock tip. She believes that if the economy remains strong, the investment in the stock will result in a profit of $20,000. If the economy grows at a moderate pace, the investment will result in a profit of $15,000. However, if the economy goes into recession, the investment will result in a loss of $10,000. You contact an economist who believes there is a 30% possibility the economy will remain strong, a 50% possibility the economy will grow at a moderate pace, and a 20% possibility the economy will slip into recession. What is the expected profit from this investment? (Select the most accurate option from below). O An expected loss of $25,000 O An expected profit of $18, 200 O An expected profit of $21,000 An expected profit of $11,500 O An expected profit of $33,000 An expected loss of $14,000 Correct answer is not listed O An expected loss of $15, 300
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