Alice is an investor. She has $100 to invest in the Wonderland stock market which has three stocks

to invest in: Wheat, Corn, Tea. Being an economy based mainly on agriculture, the return of the

investment in Wonderland depends on the weather condition and the availability of water. The

weather is either good with probability or bad (each happens with equal probability), and water

is either enough or not (each happens with equal probability). The weather condition and the

availability of water are not related (they have independent probability distributions). She only cares

about her return and is to decide to invest $100 in one of the stocks. Her payoffs are as follows.

1. If the weather is good and there is enough water: then the rate of return of Wheat is 30%,

Corn is 10% and Tea is 30% (that is, she receives $120 if she invests in Wheat, $110 if she