Solved

Two Opposing Views of Social Responsibility (Scenario)

question 64

Multiple Choice

Two Opposing Views of Social Responsibility (Scenario)
The board of directors at Acme Generating Corporation is meeting to consider the construction of a new electrical generation facility somewhere along the coast. Director Adnan would like the facility to be a coal- burning plant located in a remote area because the costs of this method of generating electricity are moderate and any ash from the smokestacks would not affect the city. Director Wael wants a nuclear plant located near a major city since the city needs the electricity the most, and not only is nuclear production the least- expensive generating method but it also utilizes renewable fuels. Director Jabir wants a generating plant that uses combustible fuels collected from the city's garbage; moreover, he wants the metals and glass sent to recycling and the food materials buried in the city landfill. By locating near the downtown government area, steam could be used for heating the government buildings after it has passed through the generating turbines, and the exhaust would be "scrubbed" to make it clean. He believes that this approach would provide the electricity needed for the growing city and the heat for government buildings, and they would be recycling resources and minimizing the impact on the city's landfill. The other directors have not offered any input to the discussion.
-Director Jabir is being mostly ___________.

Definitions:

Expected Return

The projected average return on an investment, accounting for all potential outcomes and their probabilities.

Expected Market Return

The average return anticipated from an investment in a broad market index over a certain period.

Expected Return

The anticipated return on an investment based on the probabilities of possible outcomes.

Risk-Free Rate

The expected earnings from an investment that carries no risk of losing money, typically exemplified by the return on government bonds.