Post Utme Lead City University 2021 Commerce Question 2

Practice objective / multiple choice question 2 from the 2021 Post Utme Lead City University Commerce examination.

Post Utme Lead City University 2021 Commerce Objective / Multiple Choice
Question 2 POST_UTME_LEAD_CITY_UNIVERSITY • 2021 • COMMERCE • objective

A company is considering two investment options: Option A, which has a 10% chance of returning 100,000 and a 90% chance of returning 0, and Option B, which has a 20% chance of returning 80,000 and a 80% chance of returning 0. Which option has a higher expected return?

Answer Options

Correct Answer A. Option A
B. Option B
C. Option A and Option B are equally likely to return the highest amount
D. Neither option is likely to return a significant amount
Correct Answer
A
Correct Option:
Option A

About This Question

This is Post Utme Lead City University 2021 Commerce Question 2. It is one of the objective questions from the 2021 Post Utme Lead City University Commerce examination.

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