Ray Crofford is evaluating investment alternatives for the $100,000 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 Bonds alternative,using revised probabilities,is ___.
A)$36,600
B)$24,600
C)$56,800
D)$48,200
E)$45,800

Question

Ray Crofford is evaluating investment alternatives for the $100,000 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 Bonds alternative,using revised probabilities,is ___.
A)$36,600 
B)$24,600 
C)$56,800 
D)$48,200 
E)$45,800

Quizplus · Accepted Answer

The Answer of Ray Crofford is evaluating investment alternatives for the $100,000 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 Bonds alternative,using revised probabilities,is ___.
A)$36,600 
B)$24,600 
C)$56,800 
D)$48,200 
E)$45,800

Ray Crofford Is Evaluating Investment Alternatives for the $100,000 Which