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

question 66

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 Bear market the EMV of the Stocks alternative,using revised probabilities,is ___.

• A)$132,300
• B)-$73,900
• C)$127,600
• D)-$99,800
• E)$100,000

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