Ray Crofford is evaluating investment alternatives to invest $100,000 which he inherited from his grandfather.His investment advisor has identified four alternatives and constructed the following payoff table which shows expected profits (in $10,000's)for various market conditions: For the 'Stocks' and 'Bonds' choices,the indifference value of Hurwicz's alpha is ___.
A)0.82
B)0.71
C)0.65
D)0.33
E)0.50

Question

Ray Crofford is evaluating investment alternatives to invest $100,000 which he inherited from his grandfather.His investment advisor has identified four alternatives and constructed the following payoff table which shows expected profits (in $10,000's)for various market conditions:  For the 'Stocks' and 'Bonds' choices,the indifference value of Hurwicz's alpha is ___.
A)0.82 
B)0.71 
C)0.65 
D)0.33 
E)0.50

Quizplus · Accepted Answer

The Answer of Ray Crofford is evaluating investment alternatives to invest $100,000 which he inherited from his grandfather.His investment advisor has identified four alternatives and constructed the following payoff table which shows expected profits (in $10,000's)for various market conditions:  For the 'Stocks' and 'Bonds' choices,the indifference value of Hurwicz's alpha is ___.
A)0.82 
B)0.71 
C)0.65 
D)0.33 
E)0.50

Ray Crofford Is Evaluating Investment Alternatives to Invest $100,000 Which