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2-2. Suppose that Desmond wants to make investment decision between bonds and stocks only. Conduct sensitivity analysis to help this person. Draw an appropriate picture
2-2. Suppose that Desmond wants to make investment decision between bonds and stocks only. | |||
Conduct sensitivity analysis to help this person. Draw an appropriate picture to support your responses. | |||
State of Nature | |||
Decision Alternative | Good Economy | Poor Economy | |
Stock Market | $ 110,000.00 | $ (50,000.00) | |
Bonds | $ 40,000.00 | $ 30,000.00 |
What is the point of indifference?
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