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The following payoff table gives the profits that would be realized during the next year for each of three investment alternatives Mickey is considering. Use
The following payoff table gives the profits that would be realized during the next year for each of three investment alternatives Mickey is considering. Use sensitivity analysis to determine when to invest in each of the 3 alternatives.
\begin{tabular}{|l|r|r|} \cline { 2 - 3 } \multicolumn{1}{c|}{} & \multicolumn{2}{c|}{ State of Nature } \\ \hline Alternatives & Good Economy & Poor Economy \\ \hline Stock market & $80,000 & $20,000 \\ \hline Bonds & $30,000 & $20,000 \\ \hline Cert. Deposit & $23,000 & $23,000 \\ \hline \end{tabular}Step by Step Solution
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