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Please help on my review Chrome File Edit View History Bookmarks Proles Tab Window Help ' TueOct19 8126AM A/ IDEAS X C imathas.humber.ca *- l
Please help on my review
Chrome File Edit View History Bookmarks Proles Tab Window Help ' TueOct19 8126AM A/ IDEAS X C imathas.humber.ca *- l Update An investor is considering how to invest her money. She has two options either a . domestic mutual fund that only invests in the Capital Goods sector or an international aggressive mutual fund that invests in promising startups in the Commercial & Professional Services sector. The payoff (profit) after one year for these investments depends on the state of economy. The investor thinks that there is 0.1 probability that economy will improve and 0.9 probability that economy will decline. The estimated State of the Economy Economy Improves Economy Declines (0.10) (0.90) lntemational a Mutual Fund 6'800 Construct a decision tree for this problem. payoffs are shown in the table below. Domestic 3 400 Mutual Fund ' Domestic MF Chrome File Edit View History Bookmarks Profiles Tab Window Help O Q 8 Tue Oct 19 8:26 AM Ask a Question X Content X DO IDEAS X C The Owner Of Hum X C The Optimal Point I X C Which Of The Follow X Course Hero X + C imathas.humber.ca/assess2/?cid=255&aid=6864#/skip/3 TP Update : Construct a decision tree for this problem. payoff 1 Economy improves probability 1 Domestic MF 2 Economy declines probability 2 payoff 2 payoff 3 Economy improves probability 3 International MF Economy declines probability 4 payoff 4 (a) Fill in the probability tree values: probability 1: probability 2: probability 3. OCT 8,557 19 W X P 4Chrome File Edit View History Bookmarks Profiles Tab Window Help O Q 8 Tue Oct 19 8:26 AM Ask a Question X Content X DO IDEAS X C The Owner Of Hum X C The Optimal Point I X C Which Of The Follow X Course Hero X + C imathas.humber.ca/assess2/?cid=255&aid=6864#/skip/3 TP Update : probability 1: probability 2: probability 3: probability 4: payoff 1: payoff 2: payoff 3: payoff 4: Round your answers in part (b) to the nearest dollar. (b) Calculate the EMV values: B OCT 8,557 19 W X P 4Chrome File Edit View History Bookmarks Profiles Tab Window Help O Q 8 Tue Oct 19 8:26 AM Ask a Question X Content X DO IDEAS X C The Owner Of Hum X C The Optimal Point I X C Which Of The Follow X Course Hero X + > C imathas.humber.ca/assess2/?cid=255&aid=6864#/skip/3 TP Update : payon 4. Round your answers in part (b) to the nearest dollar. (b) Calculate the EMV values: EMV(Domestic Mutual Fund) = EMV (International Mutual Fund) = (c) Where should the money be invested? O Domestic Mutual Fund International Mutual Fund Question Help: Message instructor Add Work OCT 8,557 19 W X P 4Step by Step Solution
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