Total points = 5 Note: Late submissions or submitted via email will not be considered. Questions No. 1: Debbie Gibson is considering three investment options for a small inheritance that she has just received-stocks, bonds, and money market. The return on her investment will depend on the performance of the economy, which can be strong, average, or weak. The returns for each possible combination are shown in the following table: INVESTMENT STRONG AVERAGE WEAK Stocks 12% 6% -10% Bonds Money market 4% 3% 2% Assume that Debbie will choose only one of the investment options. (a) After reading about economic predictions, Debbie Gibson has assigned the probability that the economy will be strong, average, and weak at 0.2, 0.35, and 0.45, respectively. Using EMVs, what option should Debbie choose? What is the maximum EMV? 7% 4% 1%