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Bobby Bell has $500,000 and is considering investing in a project that would yield the following returns one year from today: Return Probability of Outcome

Bobby Bell has $500,000 and is considering investing in a project that would yield the following returns one year from today:

Return

Probability of Outcome

$200,000

.05

$60,000

.30

$20,000

.45

<$100,000>

.20

The expected return for this investment is:

$17,000

$57,000

$32,000

$45,000

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