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An investor is considering 4 investments, A, B, C, D. The payoff from each investment is a function of the economic climate over the next

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An investor is considering 4 investments, A, B, C, D. 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 decision tree has been developed for the problem. The investor has estimated the probability of a declining economy at 40% and an expanding economy at 60% Investment Economy Payoff E06 30 A 004 20 E06 30 B O D04 40 EOS 004 20 E06 3D D 50 DO 4 E=Expanding Economy D-Decining Economy a) What is the correct decision for this investor based on an expected monetary value criterion? (Click to select) b) What is the expected monetary value for the investor's problem (click to select 42 36 32 38

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