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

question 14

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.

• A) T-Bills
• B) Stocks
• C) Bonds
• D) Mixture
• E) Bank CD's