Ray Crofford Is Evaluating Investment Alternatives for the $100,000 Which

question 8

Multiple Choice

Ray Crofford is evaluating investment alternatives for the $100,000 which he inherited from his grandfather.His investment advisor has identified four alternatives and constructed the following table which shows expected profits (in $10,000's) for various market conditions and their probabilities: If Ray uses the EMV criterion,the appropriate choice is ___.

• A)T-Bills
• B)Stocks
• C)Bonds
• D)Mixture
• E)Bank CD's

Understand the significance of the collective action problem in the context of interest group politics.

Recognize the implications of high financial spending by interest groups on democratic systems.

Understand different strategies used by political interest groups.

Recognize the patterns of membership demographics in special interest groups.