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Decision screen
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On the following pages, you will be presented with the information about the stock and your employment status and asked to make a series of investment decisions.
The charts below display the following:
- Stock market: Performance of a $1 invested in a mutual fund that invests in a a broad blue-chip stock market index, such as the S&P 500 or the Dow Jones Index.
- Salary status: Increase or decrease in salary for the year.
- Branches: Each branch represents an outcome. All branches are equally likely.
- Bond: Performance of a $1 investment in the bond..
The information on overall stock market conditions is not real. Please treat each question as though it is independent. There are no right or wrong answers, we are only interested in the choices you would make. Assume that the past relationships are stable predictors of future relationships.
Now please answer the following questions. Remember, both branches are equally likely.
Consider the information presented below.