Suppose an investor has a certain amount to invest and considers four strategic actions for investment, S 1, S 2, S 3 and S 4.

The expected pay-offs of the Strategy States of economy four strategies under three High growth Low growth Recession different states of the economy S 1 30 18 8

(high growth, low growth and S 2 20 25 2

recession) are given in the S 3 25 15

–5 following Table.

S 4 10 15 6