2. (5 pts) The following payoff table represents growth rates associated with 3 possible investments in | ||||||||
stocks, bonds, or bank deposits under various economic growth scenarios. | ||||||||
Growth Rate | ||||||||
Hi Growth | Med Growth | Low Growth | No Growth | maximum | minimum | |||
Bonds | 9 | 10 | -1 | 2 | 10 | -1 | ||
Stocks | 15 | 9 | 5 | -4 | 15 | -4 | ||
Deposits | 6 | 6 | 4 | 4 | 6 | 4 | ||
b. Write the best decision using the Hurwicz Criterion with an optimistic risk | ||||||||
avoidance of alpha = 0.3 | ||||||||
I need excel formulas too please
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