An Investor Has The Opportunity To Buy One Of Four Different Stocks

Stock 4

Given the information above,

a.       Are any of the stocks clearly inferior choices? (Explain. You can eliminate any inferior choice(s) from the rest of the analysis).

b.      What is the alternative chosen using the optimistic (maximax) criterion?

c.       What is the alternative chosen using the pessimistic (minimax) criterion?

d.      What is the alternative chosen using the minimax regret criterion?  

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