Question: Under normal conditions (75% probability), Financing Plan A will produce a $21,000 higher return than Plan B. Under tight money conditions (25% probability), Plan A

Under normal conditions (75% probability), Financing Plan A will produce a $21,000 higher return than Plan B. Under tight money conditions (25% probability), Plan A will produce $35,000 less than Plan B. What is the expected value of return?

Multiple Choice

$49,000
$6,200
$7,000
$55,200

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