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Today's date is Feb 18, 2022. Even though their foreign minister denied any plans of invading a neighboring country, they moved 150,000 troops to their

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Today's date is Feb 18, 2022. Even though their foreign minister denied any plans of invading a neighboring country, they moved 150,000 troops to their border. The possibility of an invasion has already affected the stock market; if the invasion materializes, we expect further stock price increases in industries such as oil, military equipment, and grains, and further stock price decreases in online services and discretionary industries. While not much compared to our well-diversified portfolio, we would like to allocate the remaining $100000 into one of the mentioned industries. The following table present expected market values (in 1000s) for each investment alternative under the invasion and no invasion scenarios if we invest the $100,000 today. UK military experts believe there is a 70% chance of invasion. Use the Expected Value (Bayes) method to determine the optimal investment decision. Industry Oil Military Grains Online Discretionary Invasion -Third column Expected Value Place Sensitvity Table inside the yellow area below 13 181 120 56 33 No Invasion 78 44 85 135 125 Conduct a sensitivity analysis using Excel's Data Table, with similar columns to the ones we developed in class -First column: Prob of invasion with values ranging from 0 to 1 by 1 increments Second column Optimal Decision Today's date is Feb 18, 2022. Even though their foreign minister denied any plans of invading a neighboring country, they moved 150,000 troops to their border. The possibility of an invasion has already affected the stock market; if the invasion materializes, we expect further stock price increases in industries such as oil, military equipment, and grains, and further stock price decreases in online services and discretionary industries. While not much compared to our well-diversified portfolio, we would like to allocate the remaining $100000 into one of the mentioned industries. The following table present expected market values (in 1000s) for each investment alternative under the invasion and no invasion scenarios if we invest the $100,000 today. UK military experts believe there is a 70% chance of invasion. Use the Expected Value (Bayes) method to determine the optimal investment decision. Industry Oil Military Grains Online Discretionary Invasion -Third column Expected Value Place Sensitvity Table inside the yellow area below 13 181 120 56 33 No Invasion 78 44 85 135 125 Conduct a sensitivity analysis using Excel's Data Table, with similar columns to the ones we developed in class -First column: Prob of invasion with values ranging from 0 to 1 by 1 increments Second column Optimal Decision

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