4eed490d6deb1e5723746649ee4c8968_2b184dd4146e5a8be3ebe1686861b60b.xlsx

4eed490d6deb1e5723746649ee4c8968_2b184dd4146e5a8be3ebe1686861b60b.xlsx

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Strong Average Weak Stocks 12% 6% -10% Bonds 7% 4% 1% Money market 4% 3% 2% Maximax 12% Maximum of all maximum values Maximin 2% Maximum of all minimum values Equally likely 4% In equally likely criterion, we calculate the av Criterion of realism 4% Realism payoff = Alpha*maximum payoff for Strong Average Weak Stocks 12% 6% -10% Bonds 7% 4% 1% Money market 4% 3% 2% Maximum value 12% 6% 2% Regret for Strong Regret for Average Regret for Weak Stocks 0% 0% 12% Bonds 5% 2% 1% Money market 8% 3% 0% Minimax regret 5% First, we calculate the opportunity loss for ea Then, take the maximum of those opportun
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