Post Utme Unn 2017 Commerce Question 5

Practice objective / multiple choice question 5 from the 2017 Post Utme Unn Commerce examination.

Post Utme Unn 2017 Commerce Objective / Multiple Choice

Question 5 POST_UTME_UNN • 2017 • COMMERCE • objective

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

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

Correct Option:

Project A

This is Post Utme Unn 2017 Commerce Question 5. It is one of the objective questions from the 2017 Post Utme Unn Commerce examination.

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