suppose you have invested in a new computer company whose profitability depends on two factor :
(1) whether the U.S.Congress press a tariff raising the cost of Japanese computer(the tariff will increase profits) (2) Whether the U.S. economy grows slowly or quickly(faster growth will increase profits).

a) what are four mutually exclusive states of the world that you should be concerned about?

b) past history suggests that the U.S.Congress will impose a tariff only if economy grows slowly. If this is true, is the investment more attractive to (a) a risk averse person, (b) a risk loving person ;(c) a risk neutral person? describe briefly this the basis for your conclusions.