Post Utme Wellspring University 2025 Commerce Question 9

Practice objective / multiple choice question 9 from the 2025 Post Utme Wellspring University Commerce examination.

Post Utme Wellspring University 2025 Commerce Objective / Multiple Choice
Question 9 POST_UTME_WELLSPRING_UNIVERSITY • 2025 • COMMERCE • objective

A firm 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 80,000 and a 80% chance of returning 0. Which project has a higher expected return?

Answer Options

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

About This Question

This is Post Utme Wellspring University 2025 Commerce Question 9. It is one of the objective questions from the 2025 Post Utme Wellspring University Commerce examination.

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