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1. An investor must decide between two alternative investment, stocks or bonds. The return for each investment depends on two future economic conditions as shown

1. An investor must decide between two alternative investment, stocks or bonds. The return for each investment depends on two future economic conditions as shown in the following table:

Economic Condition

Investment

Good

Bad

Stocks

$10000

$2000

Bonds

$7000

$4000

What probability for each economic condition would make the investor invest in stock?

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