Based on the Expected Value, Which of the Investment Options

question 19

Essay

Based on the expected value, which of the investment options listed below is the best choice, if my choice is to make money. The states of the economy are given with their probability of occurrence. Also given is the amount of money to be made in each state (given in thousands of dollars)
$\begin{array}{l|c|c|c|c|}\hline States ~of& .4 & .3 & .3 & \\nature\\ & \text { Solid Growth } & \text { Recession } & \text { Inflation } \\\text { Alternatives }&&&&\text { Expected Value }\\\hline\end{array}$
$\begin{array}{lccc}Bonds&&12&&&&&6&&&&&3\\\\Stocks&&15&&&&&-2&&&&&4\\\\Certificates ~of\\Deposits&&4.5&&&&&4.5&&&&&4.5\\\hline\end{array}$

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Definitions:

Conscientiousness

A personality trait characterized by thoroughness, diligence, and reliability; an important aspect influencing job performance and personal success.

Big Five

A personality model describing five major dimensions of human personality: openness, conscientiousness, extraversion, agreeableness, and neuroticism.

Concurrent Validity

The extent to which test scores (or other predictor information) match criterion obtained at about the same time from current employees

Selection System

A process used by organizations to identify, evaluate, and choose the most suitable candidates for employment.