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You Have a Decision to Invest $10,000 in Any of Four

question 43

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You have a decision to invest $10,000 in any of four different companies. You estimate the probabilities that the economy will be favourable or unfavourable and you estimate the percent returns over the next year. You have a decision to invest $10,000 in any of four different companies. You estimate the probabilities that the economy will be favourable or unfavourable and you estimate the percent returns over the next year.   What is the expected value for Company 3? A)  0% B)  3% C)  -2% D)  1.2% What is the expected value for Company 3?


Definitions:

Business Area

A specific segment of a business organization that focuses on a particular market or product line.

Cash Cow

A business unit or product that generates a consistently high amount of cash flow, exceeding its maintenance and development costs, typically funding other business areas.

BCG Matrix

A tool to analyze business opportunities according to market growth rate and market share.

SWOT Analysis

A strategic planning tool used to identify the Strengths, Weaknesses, Opportunities, and Threats related to business competition or project planning.

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