Use the Following to Answer the Question(s) Below

question 26

Multiple Choice

Use the following to answer the question(s) below.
As a result of the financial crisis in the fall of 2008, when the government intervened to help the economy, an investor was considering various strategies for her money and the estimated profits would depend on how successful the intervention would be in helping the economy. The estimated annual return for two different investment strategies are shown in the following table.
-Using the maximax approach, the investor should

• A) choose 20% stocks 80% bonds.
• B) choose 80% stocks 20% bonds.
• C) choose 20% stocks 80% bonds if the economy rebounds.
• D) choose 80% stocks 20% bonds if the economy declines.
• E) choose 20% stocks 80% bonds if there is no change.

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Definitions:

Automated Methods

Techniques or systems that operate with minimal human intervention, often involving machinery or software, to increase efficiency and accuracy in processes or tasks.

Production Costs

The total expense incurred in manufacturing a product or providing a service, including raw materials, labor, and overhead costs.

Need For Workers

The demand for labor or employees by businesses and industries to perform tasks and produce goods and services.

Productivity Of Labor

A measure of economic performance that calculates the output of goods and services produced per unit of labor input.