Question: Compute the expected return for each alternative. Based on their expected returns, would you rather invest your money in the stock market or in gold?
Compute the expected return for each alternative. Based on their expected returns, would you rather invest your money in the stock market or in gold?
| State of economy | Probability | Market Return | Gold Return |
| Boom | 0.15 | 25% | (-30%) |
| Moderate Growth | 0.35 | 20% | (-9%) |
| Week Growth | 0.25 | 5% | 35% |
| No Growth | 0.25 | (-14%) | 50% |
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