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 two alternatives and constructed the following tables which show (1) expected profits (in $10,000's) for various market conditions and their probabilities, and (2) the advisor's track record on predicting Bull and Bear markets: If the advisor predicts a Bull market, the revised probability of a Bull market, P (S₁|F₁) , is ___.

A) 0.877
B) 0.894
C) 0.953
D) 0.923
E) 1.000