As president and CEO of MegaWorld industries, you must decide on some very risky alternative investments:
Project Profit if Successful Probability of Success Loss if Failure Probability of Failure
A $10 million .5 -$6 million .5
B $50 million .2 -$4 million .8
C $90 million .1 -$10 million .9
D $20 million .8 -$50 million .2
E $15 million .4 $0 .6
The highest expected return belongs to investment
A) A.
B) B.
C) C.
D) D.
B
You might also like to view...
The theory that nominal exchange rates are determined so that the law of one price holds is called:
A. the law of supply and demand. B. the equilibrium principle. C. purchasing power parity. D. the fixed-exchange-rate rule.
Refer to Figure 3-5. At a price of $0
A) there is a shortage of 8 units. B) there is a shortage of 0 units. C) there is a surplus of 8 units. D) there is a surplus of 0 units.
The estimated slope coefficient (b) of the regression equation (Ln Y = a + b Ln X) measures the ____ change in Y for a one ____ change in X
a. percentage, unit b. percentage, percent c. unit, unit d. unit, percent e. none of the above
The term time inconsistency is used to describe:
A. a situation in which we regret choices we make simply because of when we made the choice. B. a situation in which we change our minds about what we want simply because of the timing of the decision. C. people's inability to correctly predict how their current choices will affect them in the future. D. people's inability to make choices today that determine their actions in the future.