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Question - You are a hotel manager and you are considering four projects that yield different payoffs, depending upon whether there is an economic boom or a recession. The potential payoffs and corresponding payoff are summarized in the following table:
Project
Boom (50%)
Recession (50%)
A
$20
-$10
B
C
$30
-$30
D
$50
Which project yields the greatest return, regardless of whether a boom or a recession occurs?
A. A
B. B
C. C
D. D
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