SCENARIO 19-5
The following payoff table shows profits associated with a set of 2 alternatives under 3 possible
events. $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $$\text { Action }$
$\begin{array}{l}
\begin{array} { c r r }
\text { Event } &{ A } & { B } \
\hline 1 & 1000 & 1200 \
2 & 500 & 700 \
3 & 300 & - 200
\end{array}
\end{array}$ Suppose that the probability of Event 1 is 0.2, Event 2 is 0.5, and Event 3 is 0.3.
-Referring to Scenario 19-5, what is the return to risk ratio for Action B?

Question

SCENARIO 19-5
The following payoff table shows profits associated with a set of 2 alternatives under 3 possible
events.  $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $$\text { Action }$
$\begin{array}{l}
\begin{array} { c r r } 
\text { Event } &{ A } & { B } \
\hline 1 & 1000 & 1200 \
2 & 500 & 700 \
3 & 300 & - 200
\end{array}
\end{array}$ Suppose that the probability of Event 1 is 0.2, Event 2 is 0.5, and Event 3 is 0.3.
-Referring to Scenario 19-5, what is the return to risk ratio for Action B?

Quizplus · Accepted Answer

The Answer of SCENARIO 19-5
The following payoff table shows profits associated with a set of 2 alternatives under 3 possible
events.  $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $$\text { Action }$
$\begin{array}{l}
\begin{array} { c r r } 
\text { Event } &{ A } & { B } \
\hline 1 & 1000 & 1200 \
2 & 500 & 700 \
3 & 300 & - 200
\end{array}
\end{array}$ Suppose that the probability of Event 1 is 0.2, Event 2 is 0.5, and Event 3 is 0.3.
-Referring to Scenario 19-5, what is the return to risk ratio for Action B?

SCENARIO 19-5 the Following Payoff Table Shows Profits Associated with a Set

SCENARIO 19-5
the Following Payoff Table Shows Profits Associated with a Set