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Sam has $10,000 and is considering investing in two stocks - HSCC and Sixcent. The table below shows the returns of the stocks under different

Sam has $10,000 and is considering investing in two stocks - HSCC and Sixcent. The table below shows the returns of the stocks under different possible scenarios: image text in transcribedDetermine if the two stocks are overpriced or underpriced and which (if any) should be purchased.

State of Affair Probability HSCC Sixcent Pandemic (long period of lockdown) 0.25 2% 20% Pandemic (short period of lockdown) 0.3 5% 10% No Pandemic 0.45 18% 2%

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