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

question 17

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 = 0.5,the appropriate choice is ______.

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

---

Definitions:

Responsibility Accounting System

A system of accounting that segments financial data and operational data by areas of responsibility, facilitating monitoring and assessment of individual departments or managers.

Responsibility Center

A segment within an organization with its own budgets and financial targets, where the managers are accountable for its performance.

Evaluation Process

A systematic method to assess the performance, value, or impact of an object or effort through defined criteria and measures.

Performance Report

A document that compares actual performance against planned or standard performance to assess deviations and efficiency.