Post Utme Esut 2022 Commerce Question 5

Practice objective / multiple choice question 5 from the 2022 Post Utme Esut Commerce examination.

Post Utme Esut 2022 Commerce Objective / Multiple Choice

Question 5 POST_UTME_ESUT • 2022 • COMMERCE • objective

A firm is considering the following two investment opportunities: Opportunity A has a 5% chance of earning a return of ₦500,000 and a 95% chance of earning a return of ₦0. Opportunity B has a 10% chance of earning a return of ₦250,000 and a 90% chance of earning a return of ₦0. Which opportunity has a higher expected return?

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

Correct Option:

Opportunity A

This is Post Utme Esut 2022 Commerce Question 5. It is one of the objective questions from the 2022 Post Utme Esut Commerce examination.

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