Question
solve using the Markov decision process also add a diagram to show the states and actions. show the use of S, A, P, R, and
solve using the Markov decision process also add a diagram to show the states and actions. show the use of S, A, P, R, and gamma. Paul is an employee who just got promoted with an increase in his monthly income he decides to start investing. To achieve this, he needs to decide whether to invest in two different stocks or not. He has $10,000 to invest either in Stock A or invest in Stock B. The stocks and their respective prices are as follows:
Stock A: ABC Corp. trading at $50/share
Stock B: XYZ Inc. trading at $75/share
If you invest in Stock A, there's an 80% chance that it will yield a 20% return (stock price increases to $60) and a 20% chance that it will yield a -10% return (stock price decreases to $45). If you invest in Stock B, there's a 40% chance that it will yield a 20% return (stock price increases to $90) and a 60% chance that it will yield a -10% return (stock price decreases to $67.50).
Your objective is to maximize his expected profit over the next two days.
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