a. Payoff Matrix Market Conditions: Investment: Good Average Poor Max Min EMV Stock 16.0% 9.0% 2.0% 16.0% -2.0% 9.2% CD 8.0% 8.0% 8.0% 8.0% 8.0% 8.0% Probability 0.1 0.85 0.05 This is the payoff Matrix for Philip b. Maximax: choose stock(16%> 8%) c. Maximin: choose CD (8%> -2%) d. Minmax regret: Regret Matrix Investment: Good Average Poor Min EOL Stock 0.0% 0.0% 10.0% 10.0% 0.5% CD 8.0% 1.0% 0.0% 8.0% 1.7% According to the regret matrix, we should choose CD (8%8%) f. EOL (expected opportunity loss): choose Stock (0.5%