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Suppose that you invest your money in the stock market by buying shares in one of two companies: A and B. Shares in Company A

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Suppose that you invest your money in the stock market by buying shares in one of two companies: A and B. Shares in Company A could yield a 80% return on investment during the next year if the market conditions are good. However, if the stock market conditions are bad, your investment may lose 50%. Company B provides 60% return on investment in a good market and a loss of 20% in a bad market. If the market conditions are good this year, there is a probability of 80% that the market conditions will also be good next year. However, if the market conditions are poor this year, there is a probability of 60% that the market conditions will also be poor next year. Currently, the probability of a good market is 50%. Find the expected profit if four years from now if you invest $10,000 in company A and $20,000 in company B. Suppose that you invest your money in the stock market by buying shares in one of two companies: A and B. Shares in Company A could yield a 80% return on investment during the next year if the market conditions are good. However, if the stock market conditions are bad, your investment may lose 50%. Company B provides 60% return on investment in a good market and a loss of 20% in a bad market. If the market conditions are good this year, there is a probability of 80% that the market conditions will also be good next year. However, if the market conditions are poor this year, there is a probability of 60% that the market conditions will also be poor next year. Currently, the probability of a good market is 50%. Find the expected profit if four years from now if you invest $10,000 in company A and $20,000 in company B

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