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please answer question a-c Q3. Bruce Lee bas 51000o invest and you can buy a GKC, RIM shares or Gold. The une year psyolf depends
please answer question a-c
Q3. Bruce Lee bas 51000o invest and you can buy a GKC, RIM shares or Gold. The une year psyolf depends on the state of the economy. For example, if Bruce bough gold and recession hits, then Bruce will end up with $1600 so he makcs $ sinn for the vear (a) Which investment should Bruce make if he was a pessimist? (2 marks) (b) Which investment should Bruce muke if he takes a minimax regret approach"? (4 marks) (c) Suppose the probability of a recession is 0.4. What is the range of the probability of "no growth" for Bruce to buy gold? (6 marks)Step by Step Solution
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