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ceciliaxo
ceciliaxo
06.09.2019 • 
Mathematics

An investment counselor calls with a hot stock tip. he believes that if the economy remains strong, the investment will result in a profit of $40 comma 000. if the economy grows at a moderate pace, the investment will result in a profit of $20 comma 000. however, if the economy goes into recession, the investment will result in a loss of $40 comma 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? an investment counselor calls with a hot stock tip. he believes that if the economy remains strong, the investment will result in a profit of $40 comma 000. if the economy grows at a moderate pace, the investment will result in a profit of $20 comma 000. however, if the economy goes into recession, the investment will result in a loss of $40 comma 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?

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