Exhibit 14.3 The Following Questions Are Based on the Information Below

Multiple Choice

Exhibit 14.3
The following questions are based on the information below.
An investor is considering 4 investments,A,B,C and leaving his money in the bank.The payoff from each investment is a function of the economic climate over the next 2 years.The economy can expand or decline.The following payoff matrix has been developed for the decision problem.The investor has estimated the probability of a declining economy at 70% and an expanding economy at 30%.

-Refer to Exhibit 14.3.What is the expected monetary value of Investment A?

A) 34.
B) 30.
C) 20.
D) 15.