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a) A financial analyst has recommended four possible listed firms for investment. The annual return that will be achieved depends on whether the stock market

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a) A financial analyst has recommended four possible listed firms for investment. The annual return that will be achieved depends on whether the stock market is good, fair, or poor. The following table summarizes the firms, market conditions and annual returns. Firm A B Good 1170 Fair 530 620 880 840 Poor -1220 -530 -2810 780 2040 D 1620 -1790 Determine the best decision alternative using the following decision criteria: i. Pessimistic 15 marks] ii. Hurwicz 15 marks) iii. Laplace 15 marks iv. Opportunity loss Page 417 + 15 marks

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