Post Utme Ui 2019 Economics Question 5

Practice objective / multiple choice question 5 from the 2019 Post Utme Ui Economics examination.

Post Utme Ui 2019 Economics Objective / Multiple Choice
Question 5 POST_UTME_UI • 2019 • ECONOMICS • objective

A firm is considering two different investment projects: Project A with a 10% probability of success and a 20% return on investment, and Project B with a 20% probability of success and a 10% return on investment. Which project should the firm adopt to maximize its expected return on investment?

Answer Options

Correct Answer A. Project A
B. Project B
C. Either project is equally profitable
D. Neither project is profitable
Correct Answer
A
Correct Option:
Project A

About This Question

This is Post Utme Ui 2019 Economics Question 5. It is one of the objective questions from the 2019 Post Utme Ui Economics examination.

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