An investor is considering purchasing one of three stocks. StockA is regarded as conservative, stock B as speculative, and stock Cas highly risky. If the economic growth during the coming year isstrong, then stock A should increase in value by $3000, stock B by$6000, and stock C by $15,000. If the economic growth during thenext year is average, then stock A should increase in value by$2000, stock B by $2000, and stock C by $1000. If the economicgrowth is weak, then stock A should increase in value by $1000 andstocks B and C decrease in value by $3000 and $10,000,respectively.
(a) Give the pay off matrix for this problem and decide if thegame is strictly determined or not.
(b) What is the optimal strategy for the investor?
(c) What is the value or expected value of the game?
