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

question 40

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 'T-Bills' and 'Bonds' choices,the indifference value of Hurwicz's alpha is _____.

• A) 0.8267
• B) 0.7134
• C) 0.6555
• D) 0.3333
• E) 0.5000

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