Read the following memo from Ben Nuna and answers questions 1 to 3 in a suitable format.

From: Ben Numa, Finance Manager

To: Finance Officer

Subject : Marketing campaign and CushyFit app

The SMT is planning a major 6-month promotional campaign to promote CushyFit, CushyStyle and our existing shoe ranges. There are three potential campaigns being considered and we need to decide which to choose. Each campaign is expected to have a different impact on the additional profit that will be generated depending on market reaction (Table 1 attached). I have calculated the expected value, standard deviation and coefficient of variation for each campaign (Table 2 attached). We have been offered perfect information about this decision for a fee of K$15,000 and so I have also calculated the value of perfect information (Table 3 attached).

Sophia Grigg, Managing Director, has looked at Tables 1, 2 and 3 and has sent a list of queries. To address these queries please prepare a briefing paper for Sophia which explains :

1. How the decision about which promotional campaign to choose will be made using a risk neutral, risk seeking and risk averse approach, stating the choice made under each approach. [24 marks]

Please give more explanation and opinion, will give you an upvote!