Page 1 of 1

Please show the decision tree in excel step-by-step

Posted: Tue Apr 12, 2022 10:20 am
by answerhappygod
Please show the decision tree in excel step-by-step
Please Show The Decision Tree In Excel Step By Step 1
Please Show The Decision Tree In Excel Step By Step 1 (140.72 KiB) Viewed 54 times
IMPORTANT: Please complete the problems using Excel, answer the questions asked in Word, then submit both files. To ensure that your solution is visible in a SpeedGrader, please take a screenshot of your decision trees and submit these images together with your Excel file. Thank you! Add-in users: Please remember to save your decision tree by clicking "SAVE" option before closing it. Mr. Manning is looking to invest $45,000 in stock and has four possible options. The four options have various rates of return based on whether the market rises or fall within the coming year. After consulting with his financial planner, he has the following estimates based on the various market outcomes: Stock Market Rising Market Stable Market Falling SUA $69,150 $48,375 $35,365 YSP $65,820 $49,320 $46,765 | НТС $58,205 $52,940 $49,605 YHA $57,250 $57,250 $57,250 Mr. Manning's planner has estimated that the probability the market rises is 50%, stays stable is 30%, and falls is 20%. To assist Mr. Manning in his decision, build a decision tree to model the decision and answer the following question. • Which stock is the best expected value decision and what is the expected value of that decision? • Which stock is the worst expected value decision?