Use the Information for the Question(s)below

question 45

Multiple Choice

Use the information for the question(s) below.
JR Industries has a $20 million loan due at the end of the year and under its current business strategy its assets will have a market value of only $15 million when the loan comes due.JR is considering a new much riskier business strategy.While this new riskier strategy can be implemented using JR's existing assets without any additional investment,the new strategy has only a 40% probability of succeeding.If the new strategy is a success,the market value of JR's assets will be $30 million,but if the strategy fails the assets will be worth only $5 million.
-What is the overall expected payoff under JR's new riskier business strategy?

• A)$4 million
• B)$11 million
• C)$20 million
• D)$15 million

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Definitions:

Self-Complexity

The extent to which an individual’s self-concept consists of many different aspects.

Multiple Aspects

Refers to considering or examining a subject, idea, or situation from varied viewpoints or components.

Self-Narrative

A coherent life story that connects one’s past, present, and possible future.

Past, Present, Future

Three temporal dimensions that represent time: the past is what has already happened, the present is the current moment, and the future is what has yet to occur.