Which of the Following Gambles Should Be Considered More Attractive

question 51

Multiple Choice

Which of the following gambles should be considered more attractive?

• A)If heads, you win $200; if tails, you lose $198.
• B)If heads, you win $5; if tails, you lose $10.
• C)If heads, you win $6; if tails, you lose $4.
• D)If heads, you win $9; if tails, you lose $6.

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Definitions:

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including material and labor expenses.

Income Statement

It's a financial statement that shows a company's revenues, expenses, and profits or losses over a specific period.

Board of Directors

A group of elected individuals who represent shareholders and oversee the major decisions and policies of a corporation.

External Auditors

Independent accountants or audit firms that review a company's financial statements to ensure accuracy and compliance with accounting standards.