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

question 85

Multiple Choice

Ray Crofford is evaluating investment alternatives for the $100,000 which he inherited from his grandfather. His investment advisor has identified two alternatives and constructed the following tables which show (1) expected profits (in $10,000's) for various market conditions and their probabilities,and (2) the advisor's track record on predicting Bull and Bear markets. If the advisor predicts a Bull market the revised probability of a Bull market,P (S₁|F₁) ,is ________.

• A) 0.877
• B) 0.894
• C) 0.953
• D) 0.923
• E) 1.000

---

Definitions:

Injured Ankle

Typically refers to physical harm or damage to the ankle joint, which can involve bones, ligaments, or muscles.

Failure to Remove

The inability to eliminate or take away something as required or expected.

Act of God

An event outside of human control, such as a natural disaster, for which no one can be held responsible.

Defence to Negligence

Legal reasons presented to demonstrate a defendant did not breach a duty of care or their actions did not cause the plaintiff's damages.