A Firm Is Considering Two Projects,A and B,with the Following

question 28

Multiple Choice

A firm is considering two projects,A and B,with the following probability distributions for profit. Given the above,what is the variance of project B?

• A)10
• B)21
• C)165
• D)440
• E)515

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Definitions:

Machinery

Machines collectively, especially those used in production or some form of labor.

Acquisitions

The act of obtaining control of another company or its assets through purchase, which can facilitate growth and expand market share.

Mergers

The process by which two or more companies combine into one entity, typically to achieve strategic objectives, gain market share, or improve efficiency.

Subsidiaries

Companies that are owned or controlled by another larger parent company, often operating under its own name and management.