Ray Crofford Is Evaluating Investment Alternatives for the $100,000 Which

Multiple Choice

Ray Crofford is evaluating investment alternatives for the $100,000 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