You Are Trying to Decide in Which of the Three

question 113

Multiple Choice

You are trying to decide in which of the three companies you should invest. Refer to the following
Payoff Table.
If the market rises in the next year, which of the following statements are correct?
i. The Opportunity Loss for Company A is $200.
ii. The Opportunity Loss for Company B is $200.
iii. The Opportunity Loss for Company C is $700.

• 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) (i), (ii), and (iii) are all false statements.

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Definitions:

Personal Loan

An unsecured loan provided by financial institutions, based on the borrower's credit history and ability to pay back, for personal use.

Loan

Borrowed money that is expected to be paid back with interest.

Liability

The condition of having legal accountability, especially regarding debts or legal duties.