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<b><u>About Oval</b></u>  
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Assume you work for an organization called Oval, a manufacturing organization that focuses on electronic products. Oval articulates its goals through its mission statement: <br/> <br/>

<b><center>We aim to become the most successful electronics company in providing superior products and services to our customers,<br/> thereby delivering long-term value to our shareholders.</center></b>
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To achieve this mission, Oval invests much of its resources in its main operations every year and uses the remaining resources to invest in financial assets such as stocks and bonds. Generating a positive return is important to Oval because Oval uses the returns to help fund operations in subsequent years. Oval has <u>10,000 Lira of total assets</u> each year, and <u>annually sets aside 5% of total assets (500 Lira)</u> to invest in financial assets. 

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    <b><u>Your Job at Oval</u></b>
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You are the investment manager at Oval. Your job is to make investment decisions using the funds Oval sets aside for investment each year. At the start of each year, you decide the number of financial assets to invest. Oval pays you a bonus based on the profitability of your investment decision. When your investment decision makes money for Oval (generates a positive return), Oval pays you a bonus equal to 20% of the total return, and Oval keeps the remaining 80%. When your investment decision is not profitable (generates zero returns), Oval does not pay you a bonus. <br/>
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<u><b>Investment Options</b></u><br/>
Each year, there are 100 financial assets in which you can invest. Each financial asset is identical and independent from each other. Each financial asset costs 5 Lira (the initial value), and generates an <u> expected return of 10%, or 0.5 Lira</u> per financial asset.  <br/>
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However, one of the 100 financial assets is a “bad” investment. Investing in the “bad” investment eliminates the returns from any other financial assets and the initial investment amount. You do not know which financial asset is the “bad” investment, and each financial asset has the same chance of being the “bad” investment. So, investing in more financial assets not only increases the expected profitability and your bonus, but also increases the likelihood of choosing the “bad” investment. <br/>
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For example, suppose you invest in 10 assets. The initial investment amount is 50 Lira (10 assets x 5 Lira per asset). If none of them are the “bad” investment, then your investment decision generates a positive return of 5 Lira (50 Lira x 10% expected return). In this case, you earn a bonus of 1 Lira (5 Lira x 20%), and Oval keeps the rest. If one of the assets is the “bad” investment, however, then your investment decision generates zero returns. In this case, Oval loses the initial investment amount (50 Lira) and earns no returns to fund main operations in the next year, and you do not earn a bonus.<br/>
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