Use the Information for the Question(s)below

question 43

Multiple Choice

Use the information for the question(s) below.
If it is managed efficiently,Luther Industries will have assets with market value of $100 million,$300,million,or $500 million next year,with each outcome being equally likely.Managers may,however,engage in wasteful empire building which will reduce the firm's market value by $20 million in all cases.Managers may also increase the risk of the firm,changing the probability of each outcome to 50%,20%,and 30% respectively.
-If its managers increase the risk of the firm,then the expected market value of Luther's assets is closest to:

• A)$260 million.
• B)$240 million.
• C)$300 million.
• D)$280 million.

---

Definitions:

Eco-Maps

Visual tools used in social work to map out an individual's or family's relationships and connections with their community and social networks.

Genograms

A graphical representation of a person's family relationships and medical history over multiple generations, often used in medicine and social work.

Mezzo Practice

In social work, it refers to interventions and practice on the intermediary scale, focusing on small to medium-sized groups or communities.

Lobbying

The act of influencing decision-makers and policies through organized advocacy or persuasion.