Illustrate what is the criterion of realism value

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Criterion of realism or Hurwitz
Suppose that the payoff from an investment depends upon market conditions. A great market has payoff of $200,000, a normal market has a payoff of $100,000, and a poor market has a payoff of $20,000. Using a value of 0.3, what is the criterion of realism value?

Reference no: EM1316211

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