Set up the payoff matrix and decide on the best strategy.An investor has $22,000 to invest in stocks, either conservative blue-chip or speculative stocks. If the stock market goes up, the speculative stocks could be worth $52,000 while the blue chips would be worth $39,000. If the market goes down, the blue chips would drop to $14,000, while the speculative stocks could drop to $12,000. Where should the investor put his money?

A.

B.

C.

D.


Answer: D

Mathematics

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