If the expected value of stock purchases under conditions of certainty is $1,900 and the expected value of stock purchases under conditions of uncertainty is $1,840,then the $60 difference is called the value of perfect information.

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The $60 difference between the expected value of stock purchases under conditions of certainty and uncertainty is known as the value of perfect information. This is because if one had perfect information about the market, they could purchase stocks with certainty and earn the higher expected value of $1,900.

If the Expected Value of Stock Purchases Under Conditions of Certainty