Question: Problem 3. Consider the tree below. How many possible strategies are there? Up (0.5) 1,500 Flat (0.3) 100 High-Risk Stock (EMV = 580) Down (0.2)

Problem 3. Consider the tree below. How many possible strategies are

Problem 3. Consider the tree below. How many possible strategies are there? Up (0.5) 1,500 Flat (0.3) 100 High-Risk Stock (EMV = 580) Down (0.2) - 1,000 Up (0.5) 1,000 Flat (0.3) 200 Low-Risk Stock (EMV = 540) Down (0.2) - 100 Savings Account 500 1,500 Consult Clairvoyant (EMV = 1,000) High-Risk Stock Low-Risk Stock HI Savings Account 1.000 Market Up (0.5) 500 High-Risk Stock 100 Low-Risk Stock Market Flat (0.3) 200 Savings Account 500 Market Down (0.2) High-Risk Stock - 1,000 Low-Risk Stock IK - 100 Savings Account 500

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