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

question 77

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: The EMV of investing in Mixture is ___.

• A)$30,000
• B)$63,000
• C)$78,000
• D)$81,000
• E)$100,000