An investor is considering investing in 2 movies: Love Forev…

An investor is considering investing in 2 movies: Love Forever and The Fighter. There is 30% chance that romance movies will be a hit and 40% chance that action movies will be a hit. There is another 30% chance that there will be a recession in movie industry. Since an action movie costs more on special effects, it brings more benefit when it is a hit while loses more when there is a recession. The following table summarizes the profits in each situation. Which of the following analysis is correct?