What is the expected profit from investment

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An investor calls with a stock tip. He believes that if the economy remains? strong, the investment will result in a profit of 40,000. If the economy grows at a moderate? pace, the investment will result in a profit of ?10,000. ?However, if the economy goes into? recession, the investment will result in a loss of 40,000. You contact an economist who believes there is a 30?% probability the economy will remain? strong, a 60?% probability the economy will grow at a moderate? pace, and a 10?% probability the economy will slip into recession. What is the expected profit from this? investment?

Reference no: EM132195667

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