You Have a Decision to Invest $10,000 in Any of Four

question 138

Multiple Choice

You have a decision to invest $10,000 in any of four different companies. You estimate the
Probabilities that the economy will be favorable or unfavorable and you estimate the percent
Returns over the next year.
Based on expected opportunity loss, which company do you choose?

• A) Company 1
• B) Company 2
• C) Company 3
• D) Company 4

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Definitions:

Washington's Ability

Refers to the skills, leadership qualities, and strategic insights of George Washington, especially as a military commander during the American Revolution and as the first President of the United States.

Thomas Paine

An influential English-born American political activist, philosopher, and author known for his works advocating independence and democratic principles.

Common Sense

Common Sense often refers to good sense and sound judgment in practical matters, and is also the title of a pamphlet by Thomas Paine published in 1776 advocating for American independence from Britain.

Despotic Governments

Governments characterized by an authoritarian form of rule where a single entity or a small group possess absolute power without effective constitutional limitations.