Rocket Energy Drink Company buys sugar to produce energy drinks. At the end of a quarter both its inventory of sugar and its inventory of energy drinks has increased. Investment for the quarter will include

a. both the increased inventory of sugar and the increased inventory of energy drinks.
b. the increased inventory of sugar, but not the increased inventory of energy drinks.
c. the increased inventory of energy drinks, but not the increased inventory of sugar.
d. neither the increased inventory of sugar nor the increased inventory of energy drinks.

a

Economics

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Economics

Four possibilities have probabilities 0.4, 0.2, 0.2 and 0.2 and values $80, $30, $0, and -$80 respectively. The expected value is:

a. $22 b. $24 c. $26 d. $28

Economics