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Ali wants to invest his money. He is considering two options: stocks and bonds. Returns from each option depends upon future economic condition as

Ali wants to invest his money. He is considering two options: stocks and bonds. Returns from each option

Ali wants to invest his money. He is considering two options: stocks and bonds. Returns from each option depends upon future economic condition as per the following table. What range of probability of favorable economic condition will make stock as a better option? Alternative Stocks Bonds Economic Condition Favorable 15,000 10,000 Unfavorable -7,000 3,000

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