1 We have $1,000 to invest. All the money must be placed in one of three investments: gold, stock, or money market certificates. If $1,000 is placed in an investment, the value of the investment one year from now depends on the state of the economy (see Table 16). Assume that each state of the economy is equally likely. For each of the following decision criteria, determine the optimal decision:

a maximin b maximax

c minimax regret d expected value

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TABLE 16 Value of $1,000 State 1 State 2 State 3 Money market certificate $1,100 $1,100 $1,100 Stock $1,000 $1,100 $1,200 Gold $1,600 $300 $1,400