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Decision using expected monetary value

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Reference no: EM132114236

Business managerial statistics

A manager has a choice between: A risky contract promising Sh. 7 million with probability 0.6 and Sh. 4million with    probability 0.4 and a diversified portfolio consisting of two contracts with independent outcomes each promising Shs. 3.5 million with probability 0.6 and shs. 2 million with probability 0.4 .Can you arrive at the decision using expected monetary value (EMV) method

Reference no: EM132114236

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