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Question 2. (20 points) Your company wants to decide between Investment A, B, and which will cost $800, $600, and $1000 upfront, respectively. If the
Question 2. (20 points) Your company wants to decide between Investment A, B, and which will cost $800, $600, and $1000 upfront, respectively. If the economy performs well, Investment A will bring in $1600 for your company, but if the economy performs poorly, then it will lose $300 for your company. If the economy performs well, Investment B will bring in $1400 for your company, but if the economy performs poorly, then it will lose $200 for your company. If the economy performs well, Investment C will bring in 2400 for your company, but if the economy performs poorly, then it will lose $300 for your company. There's a 60% chance of an economy performs well and a 40% chance of an economy performs poorly. Based on this information; a) (8 pts) Draw the decision tree. b) (10 pts) Find the expected monetary value (EMV) of each options. c) (2 pts) Which investment option should be selected? Why
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