Home Insert Draw Page Layout Formulas Data Review View Automate Developer Acrobat Calibri (Body) 11 A A = ab Paste General Conditional Formatting v Insert v Format as Table v ex Delete v Paste BIUV MvAv FE $ ~ % 9 00 .0 Sort & Find & Cell Styles v Format v Sensitivity Filter Select 1 X fx Back Problem 6 Workspace Based on the datapoints shown decide: which investment should be Certain Payof Utility selected based on the highest utility criterion? -500 0.00 -300 0.25 150 0.30 100 0.20 0.50 60 0.60 10 0.65 Investment Decisions and Payoffs (EMV) 200 0.70 Investment Large Gain Small Gain No Change Small Fall in Large Fall Vehicle in Market in Market in Market Market in Market 220 0.75 Valu Value Value Value Value Gold .100 100 200 300 0 250 0.85 Bond 250 200 -150 100 -150 300 0.90 Stock 500 250 100 -30 -50 500 1.00 C/D 60 60 60 60 60 Probability 0.1 0.2 0.3 0.2 a) Which investment should be chosen based on the EMV approach? b) What is that EMV? c) Which investment should be chosen based on the Utility approach? d) What is the Utility value of that investment