6. What is a core competency and why is this important?
7. What is the purpose of the VPI calculation?
8. The investor from problem two is is provided the updated information for a different location. The investor must decide between an apartment building, an office building, or a warehouse. The states of nature that will drive the profitability of his decision
Decision/State of Nature
	Good Economic Conditions	Fair Economic Conditions	Poor Economic Conditions
Purchase Apartment Building	$275,000	$125,000	$350,000
Purchase office building	$100,000	$95,000	-$25,000
Purchase warehouse	$325,000	$235,000	$300,000
probability of occurrence for state of nature	0.6	0.2	0.2
8.a. What is the expected maximum value for each decision?
8.b. Using these expected maximum values, what decision should the investor make?
9. Using the above payoff table what is the Expected Value with Perfect Information?
10. What are the four historical methods of positioning the firm?