Question
Monique Gonzales just graduated and was hired by a new cybersecurity firm in Colorado. She needs to set up her retirement plan portfolio. Monique has
Monique Gonzales just graduated and was hired by a new cybersecurity firm in Colorado. She needs to set up her retirement plan portfolio. Monique has completed the following payoff table for different investment options and estimated the potential profits that could be realized in one month. Monique can use the Hurwicz Criterion strategy to make her decision.
State of Nature | |||
---|---|---|---|
Alternatives | Good Economy | Fair Economy | Poor Economy |
Mutual Fund | 750750 | 500500 | 250250 |
Stock Market | 5,0005,000 | 4,0004,000 | 3,0003,000 |
CDs | 1,0001,000 | 800800 | 600600 |
Bonds | 500500 | 250250 | 150150 |
Step2of2:
What is Monique's potential payoff based on the the Hurwicz Criterion strategy and an =0.10
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