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Question 2 (10 points) 3-20(b). Mickey Lawson is considering investing some money that he inherited. The following payoff table gives the profits that would be

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Question 2 (10 points) 3-20(b). Mickey Lawson is considering investing some money that he inherited. The following payoff table gives the profits that would be realized during the next year for each of three investment alternatives Mickey is considering: Good Poor Alternative Economy Economy Stock Market 80,000 -20,000 Bonds 30,000 20,000 CDs 23,000 23,000 Probability 50% 50% The maximum that should be paid for a perfect forecast of the economy is $21.750? True False

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