Decisions Involving Uncertainty - Work It Out You have $500 to invest in the stock market and are considering buying shares in Walmart and Target, both of which are trading at $50 per share. Analysts believe there's a 50% chance of the economy growing or a 50% chance of the economy falling into a recession. If the economy grows, then the price of the Walmart stock will fall to $40 per share and the price of the Target stock will rise to $70 per share. If, however, the economy goes into a recession then the price of the Walmart stock will rise to $70 per share and the value of the price stock will fall to $40 per share. For each of the following, determine the expected value of your portfolio. a. What will the expected value of your portfolio be if you buy $500 in Walmart stock? Value of portfolio: $ b. What will the expected value of your portfolio be if you buy $500 in Target stock? Value of portfolio: $ c. What would the expected value of your portfolio be if you buy $250 worth of Walmart stock and $250 worth of Target stock? (You can calculate this for a recession or for economic growth.) Value of portfolio: $ d. All three possible investments result in the same expected value for your portfolio. True False c. What would the expected value of your portfolio be if you buy $250 worth of Walmart stock and $250 worth of Target stock? (You can calculate this for a recession or for economic growth.) Value of portfolio: $ d. All three possible investments result in the same expected value for your portfolio. True False e. All three possible investments result in the same level of risk. True False