LINK 3. Practice 2 DMUU only PRACTICE 2: A stock market advisory service offers three investments portfolios for one of its customers. All portfolios have the same investment cost. Portfolio A contains speculative stocks, which aim for capital gain through price appreciation. Portfolio B is made up of stocks of stable companies that pay good dividends overt the long run. Portfolio C comprises stocks with a moderate potential for growth and a moderate yield of dividends. The customer has enough money to invest in only one of these three portfolios for a period of one year. The net return on investments will depend on whether the economy during the period will be in a stage of inflation, recession, or depression. The net potential gains or losses are calculated as follows: STATES OF NATURE Inflation Recession Depression Portfolio 4 $ 100 $ 60 $- 50 Portfolio B $ 60 S 50 S 40 ALTERNATIVES Portfolio C S 70 $ 40 S 10 1. What would be the decision according to (1) Maximax (optimism); (2) Maximin (pessimism); (3) Equal Likelihood: (4) Minimizing Regret; and. (5) Realism where a = .6? Be sure to show work and indicate the recommended alternative each time. * POST ONLY ON LINK 3 Submit ALL YOUR WORK AND Summarize in the Expected Answer Format below: DMUU: Letter Answer Reason Perfect Optimism: Perfect Pessimism Optimism at a = Equal Likelihood: Minimizing Regret: Overall DMUU: (Give Reasons!)