There Are Three Projects to Consider

question 15

Multiple Choice

There are three projects to consider. Project A and B both have an expected return of $1,000,000. Project C has an expected return of $800,000. Which of the following statements best describes a risk-neutral investor?

• A) An investor who would choose to do Project A because it is closer to home, even though it has a lower risk.
• B) An investor who would choose to do Project B because it is closer to home, even though it has a lower risk.
• C) An investor who would choose to do Project B because it is closer to home, even though it has a higher risk.
• D) An investor who would choose to do Project C because it is closer to home, even though it has a lower risk.
• E) An investor who would choose to do Project C because it is closer to home, even though it has a higher risk.

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Definitions:

Consumer's Five Senses

Refers to how businesses tap into taste, touch, sight, sound, and smell to influence consumer behavior and enhance the shopping experience.

Product Differentiation

Product differentiation is a marketing strategy that businesses use to distinguish their products from similar offerings on the market.

Service Sector

The sector of an economy that is concerned with the production of services rather than goods, including industries like healthcare, education, retail, and financial services.

Mission

The purpose or rationale for an organization’s existence.