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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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