In Problem Sl-5 assume that Nicole, with the help of a financial newsletter and some library research, has been able to assign probabilities to each of the possible interest rates during the next year as follows:

a. Using expected value, determine her best investment decision.
b. Nicole is considering hiring a financial analyst to help her determine the best investment. What is the maximum amount she should pay an analyst?

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Interest Rates 7% 1.7 2.8 3.03.64.5 Investments 5% 6% 8% 9% Money market fund Stock growth fund Bond fund Government fund Risk fund Savings bonds 3.55 7.5 4 3.5 3 4. 3.6 3.2 2.8 2.1 12 7 4.2 9.3 16.7 3.2 3.4 3.5