You are trying to decide how to choose between two stock portfolios (A and B) or a Savings Account. There is a 50% chance the market goes up and a 50% chance it goes down. The return for these choices depends on whether the market goes up or down according to the following table: Market goes up Market goes down Portfolio A 1,500 -1,000 Portfolio B 1,000 Savings Account 390 390 Suppose a stock advisor can advise you about whether the market will go up or down. If the advisor is correct 75% of the time, what is the most you'd be willing to pay the advisor? The tree below illustrates the situation if you decide to hire the advisor. -200 1500 Market goes up 0.75 Market goes down P = 0.25 Portfolio A - 1000 1000 Portfolio B Market goes up -0.75 Market goes down p=0.25 Savings Account 200 Advisor predicts "up p=0.5 390