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

Problem 3. Consider the tree below. How many

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

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