Evaluation of Two Projects Has Shown for Project X a Return

question 27

Multiple Choice

Evaluation of two projects has shown for Project X a return of £10m with a 0.8 probability and a return of 0 with probability 0.2, while Project Y has a return of £20m with a probability of 0.5 and a return of 0 with the same probability. What is the expected return?

• A) £21m
• B) £18m
• C) £30m
• D) £2m

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Definitions:

Fusion

The process of combining two or more entities into a single one, often referring to nuclear fusion or the merging of cells.

Stability

The state of being resistant to change, or the ability of an object or system to maintain its state when subjected to external forces.

Equilibrium

A state of balance or stability within a system, where competing influences are canceled by others, resulting in no net change.

Allopatric Speciation

The formation of new species through geographical separation, leading to reproductive isolation and genetic divergence.