Chuck Douglass,an Imperfect Forecaster Correctly Predicts 57% of All Bull

Multiple Choice

Chuck Douglass,an imperfect forecaster correctly predicts 57% of all bull markets and 68% of all bear markets.Roy Simmonds is a perfect forecaster.If Chuck Douglass is able to charge a fee of $125,000,the fee that Roy Simmonds should charge is __________.Assume that both forecasters manage similar size funds.

A) $31,250
B) $200,000
C) $500,000
D) $625,000