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

question 61

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. The probability that the advisor predicts a Bull market and the Bull market is the actual condition p(F₁ᴖS₁₎ is ________.

• A)0.78
• B)0.9
• C)0.953
• D)0.923
• E)0.72

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