Use the Information Given Below to Answer the Following Question(s)

question 39

Multiple Choice

Use the information given below to answer the following question(s) . Below is a payoff table that lists three mortgage options: $$\begin{array} { | l | l | l | l | } \hline & { \text { Outcome } } \\\hline \text { Decision } & \text { Rates Rise } & \text { Rates Stable } & \text { Rates Fall } \\\hline \text { 2-year ARM } & \$ 66,645 & \$ 43,650 & \$ 38,560 \\\hline \text { 5-year ARM } & \$ 62,857 & \$ 47,698 & \$ 42,726 \\\hline \text { 25-year fixed } & \$ 52,276 & \$ 52,276 & \$ 52,276 \\\hline\end{array}$$
-What is the maximum opportunity loss incurred for the 25-year fixed decision?

• A) $ 8,626
• B) $ 13,716
• C) $ 14,369
• D) $ 10,581

---

Definitions:

Neutral Film

A type of film content designed to evoke no strong emotional response from the viewer.

Funny Film

A movie genre designed to amuse and entertain the audience through humor, ranging from slapstick and romantic comedies to parodies and satires.

More Aggressive

Exhibiting a behavior that is forceful, possibly hostile, aiming at dominance or achievement.

Positive Emotion

Feelings or emotions that are pleasurable or satisfying such as joy, gratitude, serenity, interest, hope, pride, amusement, inspiration, awe, and love.