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