Suppose you visit with a financial advisor, and you are considering investing some of your wealth in one of three investment portfolios: stocks, bonds, or commodities. Your financial advisor provides you with the following table, which gives the probabilities of possible returns from each investment:

a. Which investment should you choose to maximize your expected return: stocks, bonds, or commodities?

b. If you are risk-adverse and have to choose between the stock and bond investments, which should you choose? Why?

stocks		bonds		commodities
probability	return	probability	return	probability	return
.25	12%	0.6	10%	0.2	20%
.25	10%	0.4	7.50%	0.25	12%
.25	8%			0.25	6%
.25	6%			0.25	4%
				0.05	0%