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I am stuck on these questions and the table is the only data provided to me for the 4 problems. Problem 1: Analyzing Investments in

I am stuck on these questions and the table is the only data provided to me for the 4 problems.

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Problem 1: Analyzing Investments in Stock Selections You are providing advice to novice investor for selecting the best investment choice among two options depicted in the payoff table seen below (showing the expected return of a $1,000 investment in each investment alternative at the end of one year in each of the four economic conditions). Investment Option State of the Economy A B Probability Recession $50 $70 0.1 Stable economy $90 $50 0.4 Moderate growth $120 $270 0.3 Boom $170 $420 0.2Question 8: Compute the coefficient of variation in the return of stock A and stock B. (Hint: The interest is on the variability of the payoffs. Please review Section 2.6 of the textbook to refresh on the calculation of variance of a discrete probability distribution.) Question 9: Compute the return-to-risk ratios for each investment alternatives A and B. Explain which alternative you would recommend to the investor. (Hint: The risk-to-return ratio is computed by dividing the standard deviation of the expected payoff by the related EMA). Question 10a: Compute the EVPI and the EVSI, as well as the Efficiency of Sample Information, and explain the meaning of their values to the investor. Question 10b: Conduct a sensitivity analysis under the assumption of a stable economy, and provide sensitivity graph, of the investor's decision based on the probability of the state of the economy. (Hint: Review Section 3.5 of the textbook.)

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