Assume you have a sum of money available that you would like to invest in one of the two available investment plans: stocks or bonds. The conditional payoffs of each plan under two possible economic conditions are as follows. 
a.If the probability of Economic Condition I occurring is 0.8, where should you invest your money? Use the expected monetary value criterion and show your complete work.
b.Compute the expected value with perfect information about the economic conditions (expected value under certainty).
c.Determine expected value of perfect information (EVPI).
Definitions:
Supply Function
A mathematical representation that shows the relationship between the quantity of a good supplied and its price.
Subsidy
A subsidy is a financial contribution provided by government or another authority to support businesses, markets, or individuals, aiming to promote economic and social policies.
Inverse Demand Function
A mathematical relationship expressing the price of a good or service as a function of the quantity demanded, implying how prices vary with changes in quantity demanded.
Inverse Supply
A concept in economics where the supply curve is expressed as a function of price rather than quantity supplied.
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