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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
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: Stocks Bonds Commodities Probability Return Probability Return Probability Return 0.3 10% 0.6 10% 0.2 20% 0.25 10% 0.4 7.5% 0.2 15% 0.2 10% 0.25 6% 0.25 6% 0.2 5% 0.15 0% The expected return on the stock portfolio is %. (Round your response to the nearest whole number.) The expected return on the bond portfolio is %. (Round your response to the nearest whole number.) The expected return on the commodities portfolio is %. (Round your response to one decimal place.) To maximize your expected return, you should choose
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