An investor is considering three strategies for a $1,000 investment. The probable returns are estimated as follows:

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An investor is considering three strategies for a $1,000 investment. The probable returns are estimated as follows: " STRATEGY STRATEGY 2 STRATEGY 3 A profit of $10,000 with probability 15 and a loss of $1,000 with probs- bility 85 A profit of $1,000 with probability 50, a profit of $500 with probability .30. and a loss of $500 with probability 20 A certain profit of $400 Which strategy has the highest expected profit? Would you necessarily advise the investor to adopt this strategy?

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