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5 A local investment club has $1000 to invest a treasury bonds or a stock index fund. They believe the chance that the economy will

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5 A local investment club has $1000 to invest a treasury bonds or a stock index fund. They believe the chance that the economy will do well next year is 60%. The following table has the expected returns for the different choices based on the two states of nature. What is the expected return of investing in the stock index fund? Good Economy Bad Economy Probability 0.6 Bond Fund 1025 1025 Invest in Stock Index Fund 1360 629 Submit Answer format: Number: Round to: 2 decimal places

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