Post Utme Unilag 2024 Commerce Question 23

Practice objective / multiple choice question 23 from the 2024 Post Utme Unilag Commerce examination.

Post Utme Unilag 2024 Commerce Objective / Multiple Choice
Question 23 POST_UTME_UNILAG • 2024 • COMMERCE • objective

A firm is considering investing in a new project. The project has a high expected return, but it also has a high level of risk. What is the likely effect of the firm's risk aversion on its decision to invest in the project?

Answer Options

A. The firm is more likely to invest in the project
Correct Answer B. The firm is less likely to invest in the project
C. The firm's risk aversion has no effect on its decision
D. The firm's risk aversion increases the expected return of the project
Correct Answer
B
Correct Option:
The firm is less likely to invest in the project

About This Question

This is Post Utme Unilag 2024 Commerce Question 23. It is one of the objective questions from the 2024 Post Utme Unilag Commerce examination.

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