You have just been authorized to make use of P500,000 at an investment of your

choice to be held for a 1-year period. Your financial advisors and researchers have
narrowed down six opportunities that would seem best to invest in at this time. They
have also already studied the probability of the returns on any given scenario.

The table below provides a summary.

Table 1 Summary of Investment Opportunities

Estimated Rate of Return (all in percentages)
State of Economy Probability Market 2-Stock
T-Bills ForEx Collections Commodities
Portfolio Portfolio
Recession 0.1 8.0 (32.0) 28.0 10.0 (13.0) 3.0
Below Average 0.2 8.0 (2.0) 14.7 (10.0) 1.0
Average 0.4 8.0 20.0 0.0 7.0 15.0 10.0
Above Average 0.2 8.0 33.5 (10.1) 25.0 24.0
Boom 0.1 8.0 50.0 (20.0) 20.0 33.0 15.0

Choose how to best invest the P500,000 given to you and explain the reason behind
said decision.