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Assume that you are considering investing in one of two shares for the next year: BHP Billiton or Rio Tinto. Also, to keep things simple,
Assume that you are considering investing in one of two shares for the next year: BHP Billiton or Rio Tinto. Also, to keep things simple, assume that there are only three possible economic conditions (outcomes) a year from now and that the returns on BHP Billiton or Rio Tinto under each of these outcomes are as follows:
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