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b) Now consider that if the euro appreciates, your variable costs go up to $900,000 per year, while if it depreciates, your variable costs go
b) Now consider that if the euro appreciates, your variable costs go up to $900,000 per year, while if it depreciates, your variable costs go down to $300,000 per year. There is a 50% probability of either of these outcomes in any given year. How does this volatility affect the value of your investment? Discuss
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