Post Utme Lead City University 2018 Commerce Question 4

Practice objective / multiple choice question 4 from the 2018 Post Utme Lead City University Commerce examination.

Post Utme Lead City University 2018 Commerce Objective / Multiple Choice
Question 4 POST_UTME_LEAD_CITY_UNIVERSITY • 2018 • COMMERCE • objective

A firm 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 120,000 and an 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 Lead City University 2018 Commerce Question 4. It is one of the objective questions from the 2018 Post Utme Lead City University Commerce examination.

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