Question: Moving to another question will save this response Question 4 of 5 >>> Question 4 20 points Save Answer Suppose that you want to invest

Moving to another question will save this
Moving to another question will save this response Question 4 of 5 >>> Question 4 20 points Save Answer Suppose that you want to invest $10,000 in the stock market by buying shares in one of two companies: A and B. Shares in company A though risky, could yield a 50% return on investment during the next year. It the stock market if conditions are not favorable bear market) the stock may lose 20% of value. Company provides safe Investments with 15% return in a bull market and only 5% in a bear market All the applications you have consulted are predicting a 60% chance for a bull market and 40% for a bear market. Where you invest your money? Construct a decision tree. Decision alternative Bull Market (5) Bear Market (5) 5,000 2.000 Company A stock Company B stock Probability of occurrence 1,500 500 0.6 0.4 Stock B - $1,100 Stock A $1,100 Shock A = $2,200 Stock B - $2200

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