Answer the following questions by creating a decision tree.
-Which of the following is considered the worst expected value decision?
A) 1-year ARM
B) 3-year ARM
C) 5-year ARM
D) 30-year fixed

Question

Quizplus · Accepted Answer

A 30-year fixed mortgage typically has the highest interest rate among the options, leading to the highest total cost over the life of the loan, making it the worst expected value decision if interest rates do not significantly increase.

Answer the Following Questions by Creating a Decision Tree