The three brathers inherited the money from their late father. The youngest and middle son decided to put their money in the bank, The eldest son also considered the possibility of other ways of investing, such as in precious metals, securities or buying an investment apartment. He considered these options in the context of the future economic situation (improvement, no change, deterioration, decline) and percentage returns from individual investment options. He described the decision problem using the following table with estimates of the size of revenues. Use the EMV criteria to determine the most appropriate way to invest your eldest son. Preferences 0.052 0.2 0.056 0.692 Improvement no change deterioration decline precious metals 16.375 16 15.625 14.875 securities 10 10 8.25 0 investment apartment 6.75 1.75 1 1 Now write what is the best expected return (EMV)?
The three brathers inherited the money from their late father.
The youngest and middle son decided to put their money in the bank,
The eldest son also considered the possibility of other ways of investing, such as in precious metals, securities or buying an investment apartment.
He considered these options in the context of the future economic situation (improvement, no change, deterioration, decline) and percentage returns from individual investment options.
He described the decision problem using the following table with estimates of the size of revenues.
Use the EMV criteria to determine the most appropriate way to invest your eldest son.
|
Preferences |
0.052 |
0.2 |
0.056 |
0.692 |
|
|
Improvement |
no change |
deterioration |
decline |
|
precious metals |
16.375 |
16 |
15.625 |
14.875 |
|
securities |
10 |
10 |
8.25 |
0 |
|
investment apartment |
6.75 |
1.75 |
1 |
1 |
Now write what is the best expected return (EMV)?
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