Exhibit 14.4
The following questions are based on the information below.
-Refer to Exhibit 14.4. What is the expected value with perfect information for the investor?
A) 13.5
B) 45.5
C) 59
D) 80

Question

Exhibit 14.4
The following questions are based on the information below. 
-Refer to Exhibit 14.4. What is the expected value with perfect information for the investor?
A) 13.5 
B) 45.5 
C) 59 
D) 80

Quizplus · Accepted Answer

With perfect information, the investor would always choose option A, which has an expected value of 59. Therefore, the best choice is to choose option A.

Exhibit 14.4 The Following Questions Are Based on the Information Below