# Question 1 Excel worksheet W6Q1. Mr. Manning is looking to invest \$55,000 in stock

Question: Question 1 Excel worksheet W6Q1. Mr. Manning is looking to invest \$55,000 in stock and has four possible options. The four options have various rates of return based on whether the market rises or fall within the coming year. After consulting with his financial planner, he has the following estimated values of his investment based on the various marketPlease include how to set up excel worksheet to find answers

Show transcribed image text 100% (1 rating)Decision tree: Expected value, SUA =69150*0.55 48375*0.3 35365*0.15 =57849.75 Expected value, YSP =65820*0.55 49320*0.3 46765*0.15 =58011.75 Expected value, HTC =5…View the full answerTranscribed image text: Question 1 Excel worksheet W6Q1. Mr. Manning is looking to invest \$55,000 in stock and has four possible options. The four options have various rates of return based on whether the market rises or fall within the coming year. After consulting with his financial planner, he has the following estimated values of his investment based on the various market outcomes: Stock Market Rising Market Stable Market Falling SUA \$69150 \$48375 \$35365 YSP \$65820 \$49320 \$46765 HTC \$58205 \$52940 \$49605 YHA \$57150 \$57250 \$57350 Mr. Manning’s planner has estimated that the probability the market rises is 55%, stays stable is 30%, and falls is 15%. To assist Mr. Manning in his decision, build a decision tree to model the decision and answer the following questions: • Which stock is the best expected value decision and what is the expected value of that decision? • Which stock is the worst expected value decision?