250 words forum

 
Suppose  that the percentage annual return you obtain when you invest a dollar  in gold or the stock market is dependent on the general state of the  national economy as indicated below. For example, the probability that  the economy will be in “boom” state is 0.15. In this case, if you invest  in the stock market your return is assumed to be 25%; on the other hand  if you invest in gold when the economy is in a “boom” state your return  will be minus 30%. Likewise for the other possible states of the  economy. Note that the sum of the probabilities has to be 1–and is. 
  State of economy Probability Market Return Gold Return   
Boom 0.15 25% (-30%)   
Moderate Growth 0.35 20% (-9%)   
Week Growth 0.25 5% 35%   
No Growth 0.25 (-14%) 50%    
Based on the expected return, would you rather invest your money in the stock market or in gold? Why?
Please  keep in mind that my evaluation of your post will be based on the  extent to which you participated and fostered a positive and effective  learning environment–for yourself and others.  Participating and  sharing are the keys.  Naturally, simply copying another person’s post  is prohibited.   
Instructions: 
To make a post to this week’s Discussion Forum, click on the Decision Alternatives link, then click Start a New Conversation.   In the title block of the dialog box that appears insert your first and  last name; compose your post in the message box–do not make your post  in an attachment; and then click Post Message.

Looking for a Similar Assignment? Our Experts can help. Use the coupon code SAVE30 to get your first order at 30% off!
%d bloggers like this: