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ayzee will inherit a big amount of money from his parents and he is planning to invest a oig portion of this inheritance. He's considering to invest his money in Fixed Deposits, stock Markets, Mutual Funds or Insurance Funds. The table shows his profit for the bayoffs (every year) for every state of nature that might possibbly happen. States of Nature Fair Market -PHP 20,000.00 PHP 50,000.00 PHP 80,000.00 PHP 10,000.00 PHP 35,000.00 PHP 55,000.00 PHP 23,000.00 PHP 30,000.00 PHP 75,000.00 nsurance Funds -PHP 40,000.00 PHP 45,000.00 PHP 100,000.00 Poor Market Strong Market Fixed Deposits stock Markets Mutual Funds Questions 1.) Where would Jayzee invest his money, if he is optimistic? How much is the payoff? 2.) If he is pessimistic, where would he invest his money? How much is the payoff? 3.) Given criterion of realism value of 0.4, where would he invest his money? How much is t 4.) What is the minimax regret decision?

ayzee will inherit a big amount of money from his parents and he is planning to invest a oig portion of this inheritance. He's considering to invest his money in Fixed Deposits, stock Markets, Mutual Funds or Insurance Funds. The table shows his profit for the bayoffs (every year) for every state of nature that might possibbly happen. States of Nature Fair Market -PHP 20,000.00 PHP 50,000.00 PHP 80,000.00 PHP 10,000.00 PHP 35,000.00 PHP 55,000.00 PHP 23,000.00 PHP 30,000.00 PHP 75,000.00 nsurance Funds -PHP 40,000.00 PHP 45,000.00 PHP 100,000.00 Poor Market Strong Market Fixed Deposits stock Markets Mutual Funds Questions 1.) Where would Jayzee invest his money, if he is optimistic? How much is the payoff? 2.) If he is pessimistic, where would he invest his money? How much is the payoff? 3.) Given criterion of realism value of 0.4, where would he invest his money? How much is t 4.) What is the minimax regret decision?

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Jayzee will inherit a big amount of money from his parents and he is planning to invest a big portion of this inheritance. He's considering to invest his money in Fixed Deposits, Stock Markets, Mutual Funds or Insurance Funds. The table shows his profit for the payoffs (every year) for every state of nature that might possibbly happen. States of Nature Poor Market -PHP 20,000.00 PHP 50,000.00 PHP 80,000.00 PHP 10,000.00 PHP 35,000.00 PHP 23,000.00 PHP 30,000.00 Fair Market Strong Market Fixed Deposits Stock Markets Mutual Funds Insurance Funds -PHP 40,000.00 PHP 45,000.00 PHP 100,000.00 PHP 55,000.00 PHP 75,000.00 Questions 1.) Where would Jayzee invest his money, if he is optimistic? How much is the payoff? 2.) If he is pessimistic, where would he invest his money? How much is the payoff? 3.) Given criterion of realism value of 0.4, where would he invest his money? How much is the payoff? 4.) What is the minimax regret decision?
Transcribed Image Text:Jayzee will inherit a big amount of money from his parents and he is planning to invest a big portion of this inheritance. He's considering to invest his money in Fixed Deposits, Stock Markets, Mutual Funds or Insurance Funds. The table shows his profit for the payoffs (every year) for every state of nature that might possibbly happen. States of Nature Poor Market -PHP 20,000.00 PHP 50,000.00 PHP 80,000.00 PHP 10,000.00 PHP 35,000.00 PHP 23,000.00 PHP 30,000.00 Fair Market Strong Market Fixed Deposits Stock Markets Mutual Funds Insurance Funds -PHP 40,000.00 PHP 45,000.00 PHP 100,000.00 PHP 55,000.00 PHP 75,000.00 Questions 1.) Where would Jayzee invest his money, if he is optimistic? How much is the payoff? 2.) If he is pessimistic, where would he invest his money? How much is the payoff? 3.) Given criterion of realism value of 0.4, where would he invest his money? How much is the payoff? 4.) What is the minimax regret decision?
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