Q3. Bruce Lee has $1000 to invest and you can buy a GIC, RIM shares or Gold. The one year payoff 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 makes $600 for the year. State of economy GIC Recession 1100 No growth Normal growth 1100 1100 RIM 1000 1100 1500 Gold 1600 300 1400 (a) Which investment should Bruce make if he was a pessimist? (b) Which investment should Bruce make if he takes a minimax regret approach? (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? Q3. Bruce Lee has $1000 to invest and you can buy a GIC, RIM shares or Gold. The one year payoff 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 makes $600 for the year. State of economy GIC Recession 1100 No growth Normal growth 1100 1100 RIM 1000 1100 1500 Gold 1600 300 1400 (a) Which investment should Bruce make if he was a pessimist? (b) Which investment should Bruce make if he takes a minimax regret approach? (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