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
If the economy grows at a moderate pace, the investment will result in a profit of
However, if the economy goes into recession, the investment will result in a loss of
You contact an economist who believes there is a
probability the economy will remain strong, a
probability the economy will grow at a moderate pace, and a
probability the economy will slip into recession. What is the expected profit from this investment?
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