Ray Crawford is evaluating investment alternatives for the $1000,000 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 Bear market the EMV of the Stocks alternative, using revised probabilities, is ___.
A)$132,300
B)-$73,900
C)$127,600
D)-$99,800
E)$100,000

Question

Ray Crawford is evaluating investment alternatives for the $1000,000 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 Bear market the EMV of the Stocks alternative, using revised probabilities, is ___.
A)$132,300 
B)-$73,900 
C)$127,600 
D)-$99,800 
E)$100,000

Quizplus · Accepted Answer

The Answer of Ray Crawford is evaluating investment alternatives for the $1000,000 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 Bear market the EMV of the Stocks alternative, using revised probabilities, is ___.
A)$132,300 
B)-$73,900 
C)$127,600 
D)-$99,800 
E)$100,000

Ray Crawford Is Evaluating Investment Alternatives for the $1000,000 Which