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Please advise on part A. You plan to invest $1,000 in a corporate bond fund or in a common stock fund. The information to the

Please advise on part A.

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You plan to invest $1,000 in a corporate bond fund or in a common stock fund. The information to the right about the annual return (per $1,000) of each of these investments under different economic conditions is available, along with the probability that each of these economic conditions will occur. Complete parts (a) through (d) below. a. Compute the expected return for the corporate bond fund and for the common stock fund. The expected return for the corporate bond fund is D (Round to two decimal places as needed.) Economic Probability Condition on Corporate Common Bond Fund Stock Fund 0.01 Extreme recession 0.09 Recession 0.15 Stag nation 0.35 Slow growth 0.30 Moderate growth 0.10 High growth - 200 - 999 - 70 - 300 30 - 100 80 1 00 90 1 50 100 350

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