D what is the maximum amount that should be paid for

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(d) What is the maximum amount that should be paid for a perfect forecast of the economy?
(e) Develop an opportunity loss table for the investment problem that Mickey Lawson faces.(f)What decision would minimize the expected opportunity loss?(g)What is the Minimum EOL?
Stock Market 80000 - 80000 23000 – (-20000) $43,000Bonds 80000 - 40000 23000 - 21000 $40,000CDs 80000 - 25000 23000 – 25000 $53,000Probability .5 Smallest expected opportunity loss based on probability for each state of nature:Stock Market: $43,000 * .5 = $21,500Bonds: $40,000 * .5 = $20,000CDs: $53,000 * .5 = $26,500With the information above, the best decision would be to invest his monies in Bonds3 Allen Young has always been proud of his personal investment strategies and has done very well over the pastseveral years. He invests primarily in the stock market. Over the past several months, however, Allen has become very concerned about the stock market as a good investment. In some cases, it would have been better for Allen to have his money in a bank than in the market. During the next year, Allen must decide whether to invest $10,000 in the stock market or in a certificate of deposit (CD) at an interest rate of 8%. If the market is good, Allen believes that he could get a 15% return on his money. With a fair market, he expects to get a 6% return. If the market is bad, he will most likely get no return at all—in other words, the return would be 0%. Allen estimates that the probability of a good market is 0.4, the probability of a fair market is 0.4, and the probability of a bad market is 0.2, and he wishes to maximize his long-run average return. Mr. Young is thinking about paying for a stock market newsletter. A friend of his said that these types of letters could predict very accurately whether the market would be good, fair, or poor. Then, based on these predictions,.5

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