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

question 67

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 Hurwicz criterion with alpha = 0.9,the appropriate choice is ______.

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

---

Definitions:

Flexible

Capable of bending easily without breaking; adaptable to change or capable of being modified to suit different conditions or uses.

Natural Selection

A fundamental mechanism of evolution where organisms better adapted to their environment tend to survive and produce more offspring.

Highly Flexible

Capable of being easily modified to adapt to new conditions or to bend or move without breaking.

Emitting

The act of releasing or sending out something such as light, heat, sound, particles, etc., from a source.