You need to decide how to invest 401k for retirement. Decide between investing in 2 mutual funds: pacific growth and liberty value.

You need to decide how to invest 401k for retirement. Decide between investing in 2 mutual funds: pacific growth and liberty value. Performance of funds is uncertain and partly depends on strength of US economy. If the economy is strong in the future, pacific growth has a 70% chance of earning $700 and a 30% chance of earning $1500: Liberty value has a 50% chance learning $800 and 50% chance earning $1200. If the economy is weak in the future, Pacific growth has a 60% chance of earning $500 and a 40% chance of earning $1000: liberty value has an 80% chance of earning $800 and a 20% chance of earning $1400. Economist estimate that there is a 605 chance that the US economy will be strong in the future.