Expected Monetary Value May Be Defined as

question 54

Multiple Choice

Expected monetary value may be defined as

• A)the weighted average of all possible outcomes.
• B)the probability that each outcome will not occur.
• C)the weighted average of the financial outcomes with the probability of each outcome serving as the weight.
• D)the average of all possible outcomes.
• E)the weighted average of all mutually exclusive outcomes.

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Definitions:

Return on Investment

A performance measure used to evaluate the efficiency or profitability of an investment, calculated by dividing net profit by the cost of the investment.

Sales to Investment

A ratio that measures the efficiency of a firm in generating sales from its investments in assets.

Salaries

Regular payments made to employees for their services, typically expressed as an annual amount but paid in intervals (e.g., monthly or biweekly).

Departmental Personnel

Employees or staff members who work within a specific department of an organization.