8.16

Investment Strong Average Weak Equally likelyStocks 12% 6% -10% 0.0266666667Bonds 7% 4% 1% 0.04 HighestMoney Market 4% 3% 2% 0.03

e. Opportunity Loss Table

Investment Strong Average WeakStocks 0% 0% 12% 12%Bonds 5% 2% 1% 5%Money Market 8% 3% 0% 8%

a. if Debbie use maximax criterion, she should choose Stocks with highest percentage 12%b. if Debbie use maximin criterion, she should choose Money Market with highest percentage 2%c.if Debbie use equally likely criterion, she should choose Bonds with highest percentage 4%

d.if Debbie use criterion of realism with α=0.5, she should choose Bonds with highest percentage 4%

Maximum for alternatives

0.010.040.03

EMV with α= 0,5

with highest percentage 12% with highest percentage 2%

with highest percentage 4%

Bonds with highest percentage 4%