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 'T-Bills' and 'Bonds' choices,the indifference value of Hurwicz's alpha is _____.
A) 0.8267
B) 0.7134
C) 0.6555
D) 0.3333
E) 0.5000

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 'T-Bills' and 'Bonds' choices,the indifference value of Hurwicz's alpha is _____.
A) 0.8267 
B) 0.7134 
C) 0.6555 
D) 0.3333 
E) 0.5000

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 'T-Bills' and 'Bonds' choices,the indifference value of Hurwicz's alpha is _____.
A) 0.8267 
B) 0.7134 
C) 0.6555 
D) 0.3333 
E) 0.5000

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