A retired partner from Goldman Sachs has 1 million dollars available to invest in particular stocks or bonds. Each investment’s annual rate of return depends on the state of the economy in the coming...

A retired partner from Goldman Sachs has 1 million dollars available to invest in particular stocks or bonds. Each investment’s annual rate of return depends on the state of the economy in the coming year. The file P10_69.xlsx contains the distribution of returns for these stocks and bonds as a function of the economy’s state in the coming year. This investor wants to allocate her $1 million to maximize her expected total return 1 year from now. a. If X Y 15% (see the file), find the optimal investment strategy for this investor. b. For which values of X
 and Y
if any, will this investor prefer to place all of her available funds in the given stocks to maximize her expected total return one year from now? c. For which values of X
and Y
 if any, will this investor prefer to place all of her available funds in the given bonds to maximize her expected total return one year from now?