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Business, 21.09.2019 05:10 joewoodson1059

Suppose that a business is considering two strategies: buy or sell. if economic conditions improve, then the strategies will return, respectively, 10% and 6%. if economic conditions condition unchanged, then the strategies will return, respectively, 1% and 2%. if economic conditions collapse, then the strategies will return, respectively, -8% and -3%. if the states of nature are equally likely, then which strategy would the business select using an expected value criterion?

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