1. Avantika Mattoo working as an analyst in reputed pharmaceutical company wants to invest her money in stocks. Her frie

[answerhappygod]

1. Avantika Mattoo working as an analyst in reputedpharmaceutical company wants to invest her money in stocks. Herfriends having expertise in stock market investments, suggested herto invest money into ‘Reliance’ and ‘Maruti’ shares. Avantika’seconomist friend Niharika Dhar said there could be four differentscenarios pertaining to the return on Avantika’s investments.The figures of return on investment as per four different scenariospresented in the table below
1) Set up the opportunity loss table.
2) Draw the decision tree (Note: You may use any software formaking tree diagram, but snapshot of handwritten tree will beunacceptable)
3) According to Niharika’s latest research, she has assigned thefollowing probabilities to the four scenarios (states of nature),determine the EMV decision; P(s1) = 0.4 P(s2) = 0.1 P(s3) = 0.3P(s4) = 0.2.
(Note: Do mention the decision based on the analysis clearly infew sentences.)