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An investor is considering 4 investments, A, B, C and leaving his money in the bank. The payoff from each investment is a function of

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An investor is considering 4 investments, A, B, C and leaving his money in the bank. The payoff from each investment is a function of the economic climate over the next 2 years. The economy can expand or decline. The following payoff matrix has been developed for the decision problem. A B C D Payoff Matrix 2 3 Economy 4 Investment Decline Expand 5 A 0 85 6 B 25 65 7 40 30 8 Bank 10 10 Payoffs What decision should be made according to the maximax decision rule?

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