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inanswered a Save estion 2 [40 mark Suppose you won the lottery and were offered a choice of $500,000 in cash or a gamble in

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inanswered a Save estion 2 [40 mark Suppose you won the lottery and were offered a choice of $500,000 in cash or a gamble in which you could win $1 million based on a coin toss - heads you win, tails you lose. And now suppose you take the $500,000. You can invest it in either an Australian Treasury bond that will return $537,500 at the end of one year or a company share that has a 50:50 chance of being either worthless or worth $1,150,000 at the end of the year. Using the information provided, answer the following questions: 2.1 What is the expected dollar profit on the security investment? (The expected profit on the T-bond investment is $37,500.) [10 marks] 66 x H - B iA XX QEE

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