Question: You are trying to develop a strategy for investing some birthday money in one in two different stocks. The anticipated annual return the investment in

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You are trying to develop a strategy for investing some birthday money in one in two different stocks. The anticipated annual return the investment in each stock under four different economic conditions has the probability distribution shown to the right. Returns Probability Economic Condition Stock X Stock Y 0.1 Recession - 100 60 0.4 Slow growth 0 0 140 Moderate growth 80 -10 0.2 Fast growth 140 -110 0.3 . a. Which is the correct decision tree for your strategy? OA A. Recession 0.1 -100 Stock X Growth 220 Recession 0:1 1 60 Stock Y Growth 20 0.9 . Stock X-100 Recession 1 Stock Y -60 Stock X 0 Slow Growth Stock Y 140 Stock X 80 Moderate Growth 03 Stock Y -10 Stock X 140 Fast Growth Stock Y -110 OC. Recession 1 -100*0.1 Slow Growth 04 0-0.4 Stock X Moderate Growth 80*0.3 0.3 Fast Growth 140*0,2 0.2 60*0.1 Recession 1 Slow Growth 140*0.4 0.4 Stock Y Moderate Growth 10*0.3 Fast Growth 0.2 - 110*0.2 OD Recession 0.1 -100 Slow Growth 0 0.4 Stock X Moderate Growth 80 140 Fast Growth 02 Recession 0:1 Slow Growth 6.4 60 140 Stock Y Moderate Growth-10 3 Fast Growth -110 b. Compute the expected monetary value (return) for stock X and for stock Y. The expected return for stock X is $ (Type an integer or a decimal.) The expected return for stock Y is $ (Type an integer or a decimal.) c. Would you invest in stock X or stock Y? Explain. It is better to invest in stock because it has a

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