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Donna, a chartered financial analyst in London, United Kingdom, is wanting to invest in securities listed on the Alternative Investment Market (AIM) which is

 

Donna, a chartered financial analyst in London, United Kingdom, is wanting to invest in securities listed on the Alternative Investment Market (AIM) which is the London Stock Exchange's sub-market that is designed to help smaller growing companies. She collects information on two different companies (provided below) from the London Stock Exchange. Given the probability distribution for the economic state of the country, which stock would you advise Donna to invest in? ALPHA BIOTECH PLC ASTRATECH PLC ECONOMIC STATE PROBABILITY RETURN PROBABILITY RETURN Recession 0.20 8% 0.30 -4% Normal 0.50 12% 0.40 9% oom 0.30 18% 0.30 16%

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