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

question 56

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. If Ray uses the maximin criterion,the appropriate choice would be ________.

• A) T-Bills
• B) Stocks
• C) Bonds
• D) Mixture
• E) None

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Definitions:

Polygamy

A marital practice in which an individual has more than one spouse simultaneously, recognized in some cultures and religions.

Breadwinners

Persons who earn the primary source of income for a household, supporting the family's financial needs.

Family

An intimate group of two or more people who (1) live together in a committed relationship, (2) care for one another and any children, and (3) share activities and close emotional ties.

Deteriorating

Experiencing a decline in quality, condition, or vitality over time.