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QUESTION 9 A young couple has 55,000 to invest in either savings bonds or a real estate dent. The anticipated return on each investment, given

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QUESTION 9 A young couple has 55,000 to invest in either savings bonds or a real estate dent. The anticipated return on each investment, given good and bad economic conditions, is shown in the following payoff table. Economic Conditions Investment Good Bad Savings bond $1,000 $1,000 Real estate 10,000 -2,000 If the probabilities of Good and Bad economic conditions are 0.6 and 0.4, respectively, what are the expected values of the two options? Choose the best answer below. a. EV(savings bond) - $2,000, EV real estate) - $8,000 . Ev savings bond) - $1,500; EV(real estate) - 56,200 Oc. EV savings bond) $1,000; EV (real estate) - $5,200 Od. Ev savings bond) - S1,000; EVireal estate) = $4,000 QUESTION 10 A young couple has $5,000 to invest in either savings bonds or a real estate deal. The anticipated return on each investment, given good and bad economic conditions, is shown in the following payoff table. Economic Conditions Investment Good Bad Savings bond $1,000 $1,000 Real estate 10.000 -2,000 If the probabilities of Good and Bad economic conditions are 0.6 and 04, respectively, what is the Expected Value of Perfoct Information? Choose the best answer below a EW-87.200- 55,200 $2,100 b. KVP-56,400-55,200 $1,200 O EVP - $10,000 - 55.200 - 5400 d. VP10,000-6-51.000)-511.000

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