Firm A does well in a boom economy.Firm B does well in a bust economy.The probability of a boom is 50%.The end of period values of the two firms depend on the economy as shown below:

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The Answer of Firm A does well in a boom economy.Firm B does well in a bust economy.The probability of a boom is 50%.The end of period values of the two firms depend on the economy as shown below:

Firm a Does Well in a Boom Economy