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

question 37

Multiple Choice

Use the information below to answer the following questions) . Below are four options for an investment decision. $$\begin{array} { | l | l | l | l | } \hline \text { Decision/event } & \text { Rates Rise } & \text { Rates Stable } & \text { Rates Fall } \\\hline \text { Bank CD } & \mathbf { 0 . 8 0 } & 0.80 & 0.80 \\\hline \text { Bond fund } & - 0.75 & 0.86 & 1.50 \\\hline \text { Index fund } & 0.00 & 0.90 & 1.20 \\\hline \text { Growth fund } & - 0.30 & 0.70 & 1.40 \\\hline\end{array}$$
-Which of the following is the average utility for the index fund decision?

• A) 1.05
• B) 0.70
• C) 0.60
• D) 0.45

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Definitions:

Metamorphic Rock

A type of rock that has been changed by heat, pressure, and chemical processes from its original form, usually buried deep within the Earth's crust.

Sandstone

A medium-grained, clastic sedimentary rock composed mostly of grains of sand, along with other material.

Weathering

The process by which rocks, minerals, and soils are broken down by the effects of weather, water, and biological organisms.

Geologic Information

Data related to the earth's physical structure and substance, its history, and the processes that act on it.