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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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