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question 52

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Use the following information to answer the question(s) below.
If managed effectively,Rearden Metal will have assets with a market value of $200 million,$300 million,or $400 million next year,with each outcome being equally likely.Managers,however,may decide to engage in wasteful empire building,which will reduce Rearden's market value by $20 million in all cases.Managers may also increase the risk of the firm,changing the probability of each outcome to 50%,5%,and 45% respectively.
-What is the expected value of Rearden's assets if it were run efficiently?

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Definitions:

Human Resource Management

The practice of recruiting, hiring, deploying, and managing an organization's employees.

Labour Management Relations

The dynamics and interactions between employers and employees, often focusing on negotiation, cooperation, and conflict resolution concerning work conditions.

Legislative Acts

Laws or statutes enacted by a governmental legislative body through its legislative process.

Organisations

Entities composed of individuals and resources working together towards common goals or objectives.

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