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After reading about economic conditions, Wiley has assigned the above probabilities to the market conditions. Note: the probabilities for each market condition are as follows:
After reading about economic conditions, Wiley has assigned the above probabilities to the market conditions. Note: the probabilities for each market condition are as follows: Strong = P (0.2), Moderate = P (0.35) and Weak = P (.45).
INVESTMENT | Strong P(0.2) | Average P( .35) | Weak P(.45) |
Stocks | 12% | 6% | -10% |
Bonds | 7% | 4% | 1% |
Money Market | 4% | 3% | 2% |
Using EMV, what option should Wiley choose? Show your calculations to the best extent possible. Provide an amount along with a decision.
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