Use the Information for the Question(s)below

question 11

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 it is managed efficiently,then the expected market value of Luther's assets is closest to:

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

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Definitions:

Glial Cell

A type of cell in the nervous system that supports, nourishes, and protects neurons, playing a crucial role in brain function.

Neuron

A specialized cell transmitting nerve impulses; a nerve cell.

Synaptic Vesicle

a small, spherical sac containing neurotransmitters, found in the nerve endings, crucial for transmitting signals between neurons.

Myelin

A fatty substance that surrounds neurons' axons, facilitating faster transmission of electrical signals.