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An unmarried taxpayer itemized deductions in 2013. The taxpayers i.pdf
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### An investment counselor calls with a hot stock tip. He believes that.pdf

1. An investment counselor calls with a hot stock tip. He believes that if the economy returns to being strong, the investment will result in a profit of \$63,000. If the economy continues to grow at its current slow pace the investment will result in a profit of \$40,000. However, if the economy goes back into a recession, the investment will result in a loss of \$45,000. You consult an economist who believes there is a 27% probability the economy will return to being strong, a 63% chance the economy will continue to grow at its current slow pace, and a 10% chance the economy will go back into recession. What is the expected profit from this investment? *May want to use a x, P(x) chart to help solve Solution Hi, Please find the answer as follows: Expected Profit = .27*63000 + .63*40000 + .10*(-45000) = 37710 Thanks.
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