You have $1000, and a certain commoditypresently sells for
Chapter 4, Problem 4.23(choose chapter or problem)
You have $1000, and a certain commoditypresently sells for $2 per ounce. Suppose that afterone week the commodity will sell for either $1or $4 an ounce, with these two possibilities beingequally likely.(a) If your objective is to maximize the expectedamount of money that you possess at theend of the week, what strategy should youemploy?(b) If your objective is to maximize the expectedamount of the commodity that you possess atthe end of the week, what strategy should youemploy?
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