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TABLE 17-2
the Following Payoff Matrix Is Given \quad

Question 62

Multiple Choice

TABLE 17-2
The following payoff matrix is given in dollars.
\quad \quad \quad \quad Action \text {Action }
 Event AB14007002200500\begin{array} { c c c } \text { Event }& A & B \\\hline1 & 400 & 700 \\2 & 200 & 500\end{array}
Suppose the probability of Event 1 is 0.5 and Event 2 is 0.5.
-Referring to Table 17-2, what is the return to risk ratio for Action B?


A) 3.0
B) 9.0
C) 0.167
D) 6.0

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