Question: Question 5 a) A financial analyst has recommended four possible listed firms for investment. The annual return that will be achieved depends on whether the

Question 5 a) A financial analyst has recommended

Question 5 a) A financial analyst has recommended four possible listed firms for investment. The annual return that will be achieved depends on whether the stock market is good, fair, or poor. The following table summarizes the firms, market conditions and annual returns. Firm Good 1170 Fair 530 Poor -1220 B 620 -530 C 780 2040 1620 880 -2810 D 840 -1790 Determine the best decision alternative using the following decision criteria: i. Pessimistic (5 marks) ii. Hurwicz (5 marks) iii. Laplace (5 marks) iv. Opportunity loss (5 marks) (Total: 20 Marks)

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