Problem regarding the expected value

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Expected Value

Duddy Kravitz, a broker with Caveat Emptor, Ltd., offers free investment seminars to local PTA groups. On average, Kravitz expects 1% of seminar participants to purchase $25,000 in tax-sheltered investments and 5% to purchase $5,000 in stocks and bonds. Kravitz earns a 4% net commission on tax shelters and a 1% commission on stocks and bonds. Calculate Kravitz's expected net commissions per seminar if attendance aver- ages 10 persons.

Reference no: EM13966964

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