Bob wishes to invest $35,000 in stocks, bonds, and gold coins. He knows that his rate of return will depend on the economic climate of the country, which is, of course, difficult to predict. After careful analysis, he determines the annual profit in dollars he would expect per hundred dollars on each type of investment, depending on whether the economy is strong, stable, or weak:

How should Bob invest his money in order to maximize his profit regardless of what the economy does? That is, consider the problem as a matrix game in which Bob, the row player, is playing against the “economy.” What is the expected value of his portfolio at the end of the year?

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Stocks Bonds Gold Strong 4 1 -1 Stable 1 3 0 Weak -2 0 4