behavioral economics

1) Suppose you need to choose one investment option for your firm's cash reserves: A, B, or C. You cau choose more than one and cannot pursue a combination of these options. You have estimated the e gain/loss this year, in millions of dollars, as depicted in the table below. a. What will you choose if you are maximax (optimistic) investor? What are the pros/cons of this decl making approach? b. What will you choose if you are a maximin (pessimistic) investor? What are the pros/cons of this d making approach? c. What will you choose if you are a minimax risk (regret) investor? What are the pros/cons of this de making approach? d. Now suppose you have consulted with an economist and have the following probabilities: P(G)=0. 0.5,P(C)=0.2. Determine the investment decision that aligns with maximization of expected value. e. You now realize, based on the culture of your organization, that it is more appropriate to think abo choice in terms of expected utility, where u(x)=x2. What will you choose if you are seeking to maxit expected utility