Post Utme Al Hikmah University 2025 Commerce Question 17

Practice objective / multiple choice question 17 from the 2025 Post Utme Al Hikmah University Commerce examination.

Post Utme Al Hikmah University 2025 Commerce Objective / Multiple Choice
Question 17 POST_UTME_AL-HIKMAH_UNIVERSITY • 2025 • COMMERCE • objective

A firm is considering two different investment opportunities. Opportunity A has a 10% chance of returning ₦10,000 and a 90% chance of returning ₦0. Opportunity B has a 20% chance of returning ₦5,000 and an 80% chance of returning ₦0. Which opportunity has a higher expected return?

Answer Options

Correct Answer A. Opportunity A
B. Opportunity B
C. Both opportunities have the same expected return
D. Neither opportunity has a higher expected return
Correct Answer
A
Correct Option:
Opportunity A

About This Question

This is Post Utme Al Hikmah University 2025 Commerce Question 17. It is one of the objective questions from the 2025 Post Utme Al Hikmah University Commerce examination.

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