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Economy
an Investor Has Constructed the Following Payoff Table for His

Question 21

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Economy
An investor has constructed the following payoff table for his profit in thousands of dollars.  The state of the economy will be  Invest in  company  Weak (0.2) Moderate (0.4) Strong (0.4)A$45$35$65 B$25$25$50C$29$33$35\begin{array}{l}\text { The state of the economy will be }\\\begin{array} { | c | c | c | c | } \hline \begin{array} { c } \text { Invest in } \\\text { company }\end{array} & \begin{array} { c } \text { Weak } \\\mathbf { ( 0 . 2 ) }\end{array} & \begin{array} { c } \text { Moderate } \\\mathbf { ( 0 . 4 ) }\end{array} & \begin{array} { c } \text { Strong } \\\mathbf { ( 0 . 4 ) }\end{array} \\\hline \mathrm { A } & - \$ 45 & \$ 35 & \$ 65 \\\mathrm {~B} & - \$ 25 & \$ 25 & \$ 50 \\\mathrm { C } & \$ 29 & \$ 33 & \$ 35 \\\hline\end{array}\end{array}
-What is the most the investor should be willing to pay for perfect information about the future state of the economy?
____________________ thousand

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