Ray Crawford Is Evaluating Investment Alternatives for the $1000,000 Which

Multiple Choice

Ray Crawford is evaluating investment alternatives for the $1000,000 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 Bear market the EMV of the Bonds alternative, using revised probabilities, is ___.

A) $36,600
B) $24,600
C) $56,800
D) $48,200
E) $45,800