Tree software and sensitivity analysis and spider plots

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A financial advisor has recommended two possible mutual funds for investment: fund A and fund B. The return that will be achieved by each of these depends on whether the economy is good, fair, or poor. A payoff table has been constructed to illustrate this situation:

Investment Good Economy (GE) Fair Economy (FE) Poor Economy(PE)

Fund A 10,000 2,000 -5,000

Fund B 6,000 4,000 0

Probability 0.2 0.3 0.5

Based off this information create a decision tree using precision tree software and sensitivity analysis and spider plots

Reference no: EM132245287

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