Your devotion to investments propels your stellar career path. You secure your first position

following graduation in a very demanding, yet well-compensated setting. You are a junior

analyst with a leading financial institution.

Your immediate supervisor, Mr. Knowsnotmuch, calls you to his office with a hint of panic in

his voice. Here is the problem. Just before quitting to pursue a career in the exciting field of

underwater basket weaving, your predecessor, Mr. Quicklyquits, was working on two

prospective investments. He characterized the economy as having four states, provided estimates

of the returns for the two investments for each of the four states, and jotted down the expected

returns and variances for the two investments. This is literally all the information Mr.

Quicklyquits left behind: