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Erica has her savings in a bank account that pays 5.5% interest per year. She is considering buying stock in a pharmaceuticals company that is
Erica has her savings in a bank account that pays 5.5% interest per year. She is considering buying stock in a pharmaceuticals company that is developing a cure for cellulite. Her research indicates that she could earn 45% in one year if the cure is successful or lose 55% in one year if it is not. At what probability of success would the pharmaceuticals stock be the better choice? (Round your answer to two decimal places.)
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