Post Utme Futo 2017 Commerce Question 18

Practice objective / multiple choice question 18 from the 2017 Post Utme Futo Commerce examination.

Post Utme Futo 2017 Commerce Objective / Multiple Choice
Question 18 POST_UTME_FUTO • 2017 • COMMERCE • objective

A firm is considering two investment projects. Project A has a 10% chance of earning ₦100,000 and a 90% chance of earning ₦0. Project B has a 20% chance of earning ₦50,000 and an 80% chance of earning ₦0. Which project has a higher expected return?

Answer Options

Correct Answer A. Project A
B. Project B
C. Project A and Project B are equal
D. Neither project has a higher expected return
Correct Answer
A
Correct Option:
Project A

About This Question

This is Post Utme Futo 2017 Commerce Question 18. It is one of the objective questions from the 2017 Post Utme Futo Commerce examination.

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