The expected gains and losses under economic

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Reference no: EM1321103

Question: An investment firm is considering two alternative investments, A & B under two possible future sets of economic conditions, good & poor. There is a .60 probability of good economic conditions occurring and a .40 probability of economic conditions occurring. The expected gains & losses under each economic type of conditions are shown in the following table.

Economic Conditions
Investment	Good	Poor
A	$900,000	-800,000
B	$120,000	$70,000

Reference no: EM1321103

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