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Assume that you are considering an investment costing $12,000, for which the future cash flows from owning the security depend on the state of the

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Assume that you are considering an investment costing $12,000, for which the future cash flows from owning the security depend on the state of the economy. Given the below table data, the expected cash flow is; State of Economy Recession Moderate Growth Strong Growth O $1100 Probability 0.5 0.2 0.3 Cashflows 800 1200 1600 $1120 $1160

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