Based on the following information (Interpretation word limit 200 to 250 words) Rate of return if state occurs State of Economy Probability of state of economy Stock A Stock B Stock C Recession 33 33 7 2 5 Normal 33 33 10 0 11 Boom 33 33 15 3 20 a)Which investment has the highest expected return b) Which investment has the highest total risk

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Based on the following information: (Interpretation word limit 200 to 250 words) Rate of return if state occurs State of Economy Probability of

Based on the following information: (Interpretation word limit 200 to 250 words)

		Rate of return if state occurs
State of Economy	Probability of state of economy	Stock A	Stock B	Stock C
Recession	33.33%	7%	-2%	5%
Normal	33.33%	10%	0%	11%
Boom	33.33%	15%	3%	20%

a) Which investment has the highest expected return?

b) Which investment has the highest total risk?

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