Question: Under normal conditions (65% probability), Plan A will produce a $32,000 higher return than Plan B. Under tight money conditions (35% probability), Plan A will

Under normal conditions (65% probability), Plan A will produce a $32,000 higher return than Plan B. Under tight money conditions (35% probability), Plan A will produce $109,000 less than Plan B. What is the expected value of return? (Amounts in parentheses indicate negative values.)

Multiple Choice

($38,150)

$58,950

($17,350)

$20,800

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