Use the Information Below to Answer the Following Question(s) -Which of the Following Is the Average Utility for the Are

question 35

Multiple Choice

Use the information below to answer the following question(s) . Below are four options for an investment decision. $$\begin{array} { | l | l | l | l | } \hline \text { Decision/Event } & \text { Rates Rise } & \text { Rates Stable } & \text { Rates Fall } \\\hline \text { Bank CD } & 0.80 & 0.80 & 0.80 \\\hline \text { Bond fund } & - 0.75 & 0.86 & 1.50 \\\hline \text { Index fund } & 0.00 & 0.90 & 1.20 \\\hline \text { Growth fund } & - 0.30 & 0.70 & 1.40 \\\hline\end{array}$$
-Which of the following is the average utility for the bond fund decision?

• A) 1.18
• B) 0.38
• C) 0.54
• D) 0.43

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Definitions:

Drive

An internal motivational state created by physiological or psychological needs that drives behavior towards goals or necessities.

Incentive

Something that motivates or encourages an individual to take action or behave in a specific way.

Sensation-seeker

An individual who seeks out experiences that are varied, novel, complex, and intense in order to achieve a heightened sense of excitement or thrill.

Skydiving

The sport or activity of jumping from an aircraft and performing various maneuvers before deploying a parachute to land.