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Suppose you visit with a financial adviser, and you are considering investing some of your wealth in one of three investment portfolios: stocks, bonds, or
Suppose you visit with a financial adviser, and you are considering investing some of your wealth in one of three investment portfolios: stocks, bonds, or commodities. Your financial adviser provides you with the following table, which gives the probabilities of possible returns from each investment: Stocks Bonds Commodities Probability Return Probability Return Probability Return 0.3 10% 0.5 12% 0.2 20% 0.2 12.5% 0.5 6% 0.2 15% 0.3 6.7% 0.25 6% 0.2 7.5% 0.2 5% 0.15 0 % To maximize your expected return, you should choose: O A. bonds. OB. stocks. O c. commodities. OD. All of the portfolios have the same expected return
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