Post Utme Coal City University 2021 Commerce Question 3

Practice objective / multiple choice question 3 from the 2021 Post Utme Coal City University Commerce examination.

Post Utme Coal City University 2021 Commerce Objective / Multiple Choice
Question 3 POST_UTME_COAL_CITY_UNIVERSITY • 2021 • COMMERCE • objective

A company is considering two different investment opportunities. Opportunity A has a 10% chance of returning 100,000 and a 90% chance of returning 0. Opportunity B has a 20% chance of returning 150,000 and a 80% chance of returning 0. Which opportunity has a higher expected return?

Answer Options

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

About This Question

This is Post Utme Coal City University 2021 Commerce Question 3. It is one of the objective questions from the 2021 Post Utme Coal City University Commerce examination.

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