=+lose $30,000, but with probability 0.5 she will gain $50,000. If she invests in IBM. stock, then
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=+lose $30,000, but with probability 0.5 she will gain $50,000. If she invests in IBM. stock, then with probability 0.5 she will lose $10,000, but with probability 0.5 she will gain $30,000. Can you tell which investment she will prefer to make?
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