What Is the EMV for Option 1 in the Following

question 3

Multiple Choice

What is the EMV for Option 1 in the following decision table?
$$~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~{ \text { States of Nature } } \\\begin{array} { | l | c | c | } \hline \text { Alternatives } & \mathrm { S } _ { 1 } & \mathrm {~S} _ { 2 } \\\hline \mathrm { p } & .3 & .7 \\\hline \text { Option 1 } & 15,000 & 20,000 \\\hline \text { Option 2 } & 10,000 & 30,000 \\\hline\end{array}$$

• A) 15,000
• B) 17,000
• C) 17,500
• D) 18,500
• E) 20,000

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Definitions:

Cumulative Voting

A voting system used in corporate elections that allows shareholders to allocate their votes in any manner they choose, often used to strengthen the voting power of minority shareholders.

Dividend Growth Rate

Yearly percentage rate at which a company's dividend payments to its shareholders grow.

Investor's Return

The gain or loss an investor realizes on an investment, including dividends, interest, and capital gains.

Current Stock Price

The current trading price of a stock on the stock market.