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question 52

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Use the following information to answer the question(s) below.
If managed effectively,Rearden Metal will have assets with a market value of $200 million,$300 million,or $400 million next year,with each outcome being equally likely.Managers,however,may decide to engage in wasteful empire building,which will reduce Rearden'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%,5%,and 45% respectively.
-What is the expected value of Rearden's assets if it were run efficiently?

Identify and analyze the emotional reactions of employees to organizational change.
Recognize strategies for managing resistance to organizational change.
Comprehend the importance of diagnosis in organizational development interventions.
Familiarize with various organization development intervention techniques focused on individuals, groups, and the entire organization.

Definitions:

Brain's Reward System

A set of brain structures involved in the encouragement of behaviors through the release of pleasurable sensations or rewards.

Significant Number

A numerical value or quantity deemed to be notably more meaningful or important than others in a given context or analysis.

Initial Dose

The first dose of a medication or treatment given to a patient, which can sometimes be different from subsequent doses.

Develop Addictions

The process of becoming physically or psychologically dependent on a substance or behavior, leading to compulsive engagement despite harmful consequences.

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