Post Utme Rhema University 2024 Commerce Question 38

Practice objective / multiple choice question 38 from the 2024 Post Utme Rhema University Commerce examination.

Post Utme Rhema University 2024 Commerce Objective / Multiple Choice
Question 38 POST_UTME_RHEMA_UNIVERSITY • 2024 • COMMERCE • objective

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

Answer Options

Correct Answer A. Project A
B. Project B
C. Both projects have the same expected return
D. Neither project has a higher expected return
Correct Answer
A
Correct Option:
Project A

About This Question

This is Post Utme Rhema University 2024 Commerce Question 38. It is one of the objective questions from the 2024 Post Utme Rhema University Commerce examination.

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