{ "cells": [ { "cell_type": "markdown", "metadata": {}, "source": [ "# Investments Strategy\n", "## Problem Definition\n", "An investor wishes to invest €12,000 over a 1-year period, although he/she must decide to invest in market shares and/or gold. The profitability ratios estimated for each investment are based on the possible states of economy (see Table).\n", "\n", "| Investment \t | Growth \t | Mean Growth \t | Stabilisation \t | Poor Growth \t |\n", "|----------------------|----------|---------------|-----------------|---------------|\n", "| Market shares \t | 5 \t | 4 \t | 3 \t | -1 \t |\n", "| Gold \t | 2 \t | 3 \t | 4 \t | 5 \t |\n", "\n", "Consider a zero-sum Games Theory model with two players and answer the\n", "following:\n", "\n", "**a)** How should the investor invest the €12,000 to carry out the optimal strategy?\n", "\n", "**b)** What mean profitability value is obtained? What is the profit for the investor?\n", "\n", "\n" ] } ], "metadata": { "kernelspec": { "display_name": "Python 3", "language": "python", "name": "python3" }, "language_info": { "codemirror_mode": { "name": "ipython", "version": 3 }, "file_extension": ".py", "mimetype": "text/x-python", "name": "python", "nbconvert_exporter": "python", "pygments_lexer": "ipython3", "version": "3.7.0" }, "pycharm": { "stem_cell": { "cell_type": "raw", "source": [], "metadata": { "collapsed": false } } } }, "nbformat": 4, "nbformat_minor": 2 }