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D2. CU Invest is considering investment in either the stock market or the real estate market. For the stock market, an investor could either go
D2.
CU Invest is considering investment in either the stock market or the real estate market. For the stock market, an investor could either go for "High-tech companies" or "Other businesses." Historical data show that investing in "High-tech companies" has a 25% chance of earning $350, a 40% chance of earning $200, and a 35% chance of losing $300, while investing in "Other businesses" has a 40% chance of earning $180, a 35% chance of earning $120, and a 25% chance of losing $100. On the other hand, for the real estate market, an investor could choose to invest in either "Commercial buildings" or "Residential buildings." It is known that investment in "Commercial buildings" has a 50% chance of making $200, a 30% chance of making $80, and a 20% chance of losing $160, while investment in "Residential buildings" has a 40% chance of making $150, a 40% chance of making $120, and a 20% chance of losing $80. Please help CU Invest with its investment decision using the Decision Tree methodStep by Step Solution
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