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

question 41

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 EMV of the Bonds alternative,using revised probabilities,is ________.

• A)$85,240
• B)$25,710
• C)$108,450
• D)$75,480

---

Definitions:

Celiac Trunk

A major artery in the abdominal cavity that supplies blood to the stomach, spleen, liver, and other organs.

Thoracic Aorta

A section of the aorta, the major artery in the body, passing through the thoracic cavity and supplying oxygenated blood to the thoracic and upper abdominal organs.

Superior Mesenteric Vein

A large vein that drains blood from the small intestine, ascending colon, and part of the transverse colon into the portal vein.

Gastrosplenic Vein

A blood vessel that drains blood from the stomach and spleen into the hepatic portal vein.