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

question 30

Multiple Choice

Ray Crofford is evaluating investment alternatives for the $100,000 which he inherited from his grandfather.His investment advisor has identified two alternatives and constructed the following tables which show (1) expected profits (in $10,000's) for various market conditions and their probabilities,and (2) the advisor's track record on predicting Bull and Bear markets: If the advisor predicts a Bull market,the revised probability of a Bull market,P (S₁|F₁) ,is ___.

• A)0.877
• B)0.894
• C)0.953
• D)0.923
• E)1.000

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Definitions:

Benzyl Bromide

An organic compound consisting of a benzene ring attached to a bromomethyl group, used as a chemical intermediate in synthesis.

3-Phenylpropan-1-ol

An organic compound that is a member of the alcohol functional group and is characterized by a phenyl ring attached to a three-carbon chain ending with an -OH group.

Transformation

The process of changing a substance, compound, or molecule into a new and different substance through a chemical reaction.

Reagents

Substances used in chemical reactions to cause or analyze a reaction.