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jarridsdad
Feb 22, 2013, 01:33 PM
You have inherited $10000 prior to a presidential election and wish to invest in solar energy and oil stocks. An investment advisor provides you with a payoff matrix that indicates your probable 4-year gain, depending on which party comes into office. How should you invest your money so that you have the largest expected gain irrespective of how the election turns out?

Invest ____ amount in solar energy?
Invest____ amount in oil?

Round to the nearest dollar.

Curlyben
Feb 22, 2013, 02:08 PM
What do YOU think as you have the rest of the information available ?
While we're happy to HELP we won't do all the work for you.
Show us what you have done and where you are having problems..

joypulv
Feb 22, 2013, 03:48 PM
This is a totally meaningless question. I think you should drop the course.
There is no hypothetical.
There is no 'irrespective of how the election turns out.'
There is no right or wrong answer until you sell the stocks.