Post Utme Joseph Ayo Babalola University 2024 Commerce Question 17

Practice objective / multiple choice question 17 from the 2024 Post Utme Joseph Ayo Babalola University Commerce examination.

Post Utme Joseph Ayo Babalola University 2024 Commerce Objective / Multiple Choice
Question 17 POST_UTME_JOSEPH_AYO_BABALOLA_UNIVERSITY • 2024 • COMMERCE • objective

A firm is considering two investment options: Option A has a 20% chance of returning ₦100,000 and a 80% chance of returning ₦0, while Option B has a 50% chance of returning ₦50,000 and a 50% chance of returning ₦0. Which option has a higher expected return?

Answer Options

Correct Answer A. Option A has a higher expected return.
B. Option B has a higher expected return.
C. Both options have the same expected return.
D. Neither option has a higher expected return.
Correct Answer
A
Correct Option:
Option A has a higher expected return.

About This Question

This is Post Utme Joseph Ayo Babalola University 2024 Commerce Question 17. It is one of the objective questions from the 2024 Post Utme Joseph Ayo Babalola University Commerce examination.

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