You Are Trying to Decide in Which of the Three

question 17

Multiple Choice

You are trying to decide in which of the three companies you should invest. Refer to the following Payoff Table. If the probability of the market declining in the next year is 0.5, which of the following statements are correct?
i. The Expected Opportunity Loss for Company A is $120.
ii. The Expected Opportunity Loss for Company B is $75.
iii. The Expected Opportunity Loss for Company C is $200.

• A) (i), (ii) and (iii) are all correct statements
• B) (i) is a correct statement but not (ii) or (iii).
• C) (ii) is a correct statement but not (i) or (iii).
• D) (ii) and (iii) are correct statements but not (i).
• E) All statements are false

---

Definitions:

Judges

Individuals appointed or elected to preside over legal proceedings, making decisions on matters of law and justice.

Federal Tax Dollars

Money collected by the government from the public through various taxes, used to fund government programs and services.

Cost-Benefit Analysis

An economic evaluation method where the benefits of an action or project are weighed against its costs.

Social Movements

Collective, organized efforts aiming to promote or resist change in the society with regard to specific issues.