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Joy has $5,000 to invest. She is considering two potential investments: a one-year CD (certificate of deposit) and a stock mutual fund. The CD is guaranteed to pay a 1.5% return. She estimates the return on the stock mutual fund as 9%, 4%, or -1%, depending on whether the market conditions are good, average, or poor, respectively. Joy estimates the probability of a good, average, and poor market to be 0.10, 0.85, and 0.05, respectively. What is the expected monetary value of the investment return at the chance node associated with the stock mutual fund investment decision?

Do not include '$' in your response and your calculation should be rounded to the nearest whole dollar value.

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M91902619

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