Question: Looking for help w this question Imagine that you have $5,000 to invest and that you will have an opportunity to invest that amount in
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Imagine that you have $5,000 to invest and that you will have an opportunity to invest that amount in either of two investments (4 or B) at the beginning of each of the next 3 years. Both investments have uncertain returns. For investment A you will either lose your money entirely or (with higher probability) get back $10,000 (a profit of $5,000) at the end of the year. For investment B you will get back either just your $5,000 or (with low probability) $10,000 at the end of the year. The probabilities for these events are as follows: Investment Amount Returned ($) Probability A 0 0.35 10,000 0.65 B 5,000 0.8 10,000 0.2 You are allowed to make at most only one investment each year, and you can invest only $5,000 each time. Any additional money accumulated is left idle
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