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The following two assets and payout data are given below. Asset A: Pays a return of $2,000 20% of the time and $500 80% of th
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Answer #1

The answer is either asset.

Explanation:

Probable return from Asset A = ($2000 x 20%) + ($500 x 80%) = $800

Probable return from Asset B = ($1000 x 50%) + ($600 x 50%) = $800

Because the probable return from both the assets is same, either of the assets can be acquired for the same price.

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