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You plan to invest $ 1 , 0 0 0 in a corporate bond fund or in a common stock fund. The information to the
You plan to invest $ in a corporate bond fund or in a common stock fund. The information to the right about the annual return per $ 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 c below.
tableProbability
tableEconomicConditiontableCorporateBond Fund Stock FundExtreme recession,Recession,Stagnation,Slow growth,Moderate growth,High growth,
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
Round to two decimal places as needed.
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