Suppose Edward Limited has $1800 000 to invest in two financial assets A and B that it has identified as trading on Zimbabwean financial markets. It is further given that if the funds are invested in the two assets A and B, the investor’s wealth would be increased to $1 640 000 and $2 400 000 with probabilities of 55% and 45% respectively. Calculate the expected wealth and profit made from the investment of the funds of the company in securities A and B.
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