Chuck Douglass,an Imperfect Forecaster Correctly Predicts 57% of All Bull

question 1

Multiple Choice

Chuck Douglass,an imperfect forecaster correctly predicts 57% of all bull markets and 68% of all bear markets.Roy Simmonds is a perfect forecaster.If Chuck Douglass is able to charge a fee of $125,000,the fee that Roy Simmonds should charge is __________.Assume that both forecasters manage similar size funds.

• A) $31,250
• B) $200,000
• C) $500,000
• D) $625,000

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