Ray Crofford Is Evaluating Investment Alternatives to Invest $100,000 Which

question 67

Multiple Choice

Ray Crofford is evaluating investment alternatives to invest $100,000 which he inherited from his grandfather.His investment advisor has identified four alternatives and constructed the following payoff table which shows expected profits (in $10,000's) for various market conditions: For the 'Stocks' and 'Bonds' choices,the indifference value of Hurwicz's alpha is ___.

• A)0.82
• B)0.71
• C)0.65
• D)0.33
• E)0.50

---

Definitions:

AASB 124

An accounting standard issued by the Australian Accounting Standards Board relating to disclosures of related party transactions and relationships.

Related Party Disclosures

Financial reporting requirements that mandate entities to disclose transactions and relationships between the reporting entity and its related parties.

Control

In the context of financial reporting, control refers to the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.

Shareholding

The ownership interest represented by holding shares of stock in a company.