TABLE 17-5
The following payoff table shows profits associated with a set of 2 alternatives under 3 possible events.
$\quad $ $\quad $ $\quad $ $\quad $ $\text {Action }$
$\begin{array} { c c c }
\text { Event } & A & B \
1 & 1000 & 1200 \
2 &500 & 700\
3&300&-200
\end{array}$

Suppose that the probability of Event 1 is 0.2, Event 2 is 0.5, and Event 3 is 0.3.
-Referring to Table 17-5, what is the return to risk ratio for Action B?

Question

TABLE 17-5
The following payoff table shows profits associated with a set of 2 alternatives under 3 possible events.
 $\quad $ $\quad $ $\quad $ $\quad $ $\text {Action }$
 $\begin{array} { c c c } 
\text {  Event } & A & B \
1 & 1000 & 1200 \
2 &500 & 700\
3&300&-200
\end{array}$

Suppose that the probability of Event 1 is 0.2, Event 2 is 0.5, and Event 3 is 0.3.
-Referring to Table 17-5, what is the return to risk ratio for Action B?

Quizplus · Accepted Answer

The Answer of  TABLE 17-5
The following payoff table shows profits associated with a set of 2 alternatives under 3 possible events.
 $\quad $ $\quad $ $\quad $ $\quad $ $\text {Action }$
 $\begin{array} { c c c } 
\text {  Event } & A & B \
1 & 1000 & 1200 \
2 &500 & 700\
3&300&-200
\end{array}$

Suppose that the probability of Event 1 is 0.2, Event 2 is 0.5, and Event 3 is 0.3.
-Referring to Table 17-5, what is the return to risk ratio for Action B?

TABLE 17-5 the Following Payoff Table Shows Profits Associated with a Set

TABLE 17-5
the Following Payoff Table Shows Profits Associated with a Set