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 Stocks alternative,using revised probabilities,is ________.
A) $132,300
B) -$73,900
C) $127,600
D) -$99,800
E) $100,000

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 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 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 Stocks alternative,using revised probabilities,is ________.
A) $132,300 
B) -$73,900 
C) $127,600 
D) -$99,800 
E) $100,000

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