The Adam Smith Trading Company wants to increase its markets and conduct business in more countries. It
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The Adam Smith Trading Company wants to increase its markets and conduct business in more countries. It has done a pre-study about costs for opening new offices and approximate yearly profits (all numbers in thousands euro). The following table summarizes the study:
Which of the above locations would the manager choose if he is risk neutral, pessimistic, or optimistic, respectively? If you take three years into consideration, would the numbers differ?
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If the manager is risk neutral he would choose Australia since it has no profit worst case This mean...View the full answer
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