Ray Crawford Is Evaluating Investment Alternatives to Invest $500,000 Which

Multiple Choice

Ray Crawford is evaluating investment alternatives to invest $500,000 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