he Bert Corp and Erie lnc have both anounced POs You place an order for 950 shares of each iPO One of the POs s underpriced by $1700 and the otheis overpriced by $775 You wll receive all of the shares

To calculate the expected profit, we need to determine the cost of the shares and the sale price for each PO.

Let's denote the cost of one share of Bert Corp. as B and the cost of one share of Erie, Inc. as E.

According to the information given, the underpriced PO is underpriced by $1700. So, we can set up the following equation: 950 * B - 1700 = 0 950 * B = 1700 B = 1700 / 950

Similarly, the overpriced PO is overpriced by $775. We can set up the following equation: 950 * E + 775 = 0 950 * E = -775 E = -775 / 950

Since the cost cannot be negative, we can ignore the negative sign and find the actual cost: E = 775 / 950

Now, let's calculate the expected profit:

Profit from the underpriced PO = (1/2) * 950 * B Profit from the overpriced PO = 950 * E

Expected profit = Profit from the underpriced PO + Profit from the overpriced PO Expected profit = (1/2) * 950 * B + 950 * E

Substituting the values of B and E, we get:

Expected profit = (1/2) * 950 * (1700 / 950) + 950 * (775 / 950) Expected profit = 0.5 * 1700 + 775

Expected profit = 850 + 775 Expected profit = $162