Post Utme Covenant University 2023 Commerce Question 2

Practice objective / multiple choice question 2 from the 2023 Post Utme Covenant University Commerce examination.

Post Utme Covenant University 2023 Commerce Objective / Multiple Choice
Question 2 POST_UTME_COVENANT_UNIVERSITY • 2023 • COMMERCE • objective

A firm is considering two investment projects. Project A has a 10% chance of returning 100, a 60% chance of returning 50, and a 30% chance of returning 0. Project B has a 20% chance of returning 120, a 40% chance of returning 60, and a 40% chance of returning 0. Which project has a higher expected return?

Answer Options

Correct Answer A. Project A
B. Project B
C. Both projects have the same expected return
D. Neither project has a higher expected return
Correct Answer
A
Correct Option:
Project A

About This Question

This is Post Utme Covenant University 2023 Commerce Question 2. It is one of the objective questions from the 2023 Post Utme Covenant University Commerce examination.

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