Question: Please help. Please show ALL steps and ALL work. Also, please show what to do in excel woth an excel file. Thank you!! Mr. Brown
Mr. Brown is looking to invest some money in stock and has four possible options. After consulting with his financial planner, he has the following estimated values of his investment based on the various market outcomes: To assist Mr. Brown in his decision, build a decision tree and answer the following questions: 1. Which stock should Mr. Brown invest in and what is the expected monetary value of that decision? 2. Which stock has the worst expected monetary value? 3. How sensitive the optimal decision strategy is to changes in probabilities associated with YSP? Specifically, if the probability for $65,820 could vary anywhere between 35% and 65%, how would that affect an outcome of the tree? (Hint: replace 50% with a parameter function, change the lowest 25% to a formula that ensures all options total to 100% )
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