An Investor Estimates the Expected Return of Option a to Be

question 16

Multiple Choice

An investor estimates the expected return of option A to be $180,000 and its expected utility to be 400. The expected return of option B is $120,000, and its expected utility is 450. The investor should:

• A) select option A because it has the higher expected return.
• B) select option B because it has the higher expected utility.
• C) select option A because 180,000/120,000 > 450/400.
• D) be indifferent between option A and option B.
• E) There is not enough information to answer this question.

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Definitions:

Capitalism

An economic system based on private ownership of the means of production and their operation for profit, characterized by competitive markets, capital accumulation, and wage labor.

Postmodernist Theory

A philosophical approach that questions the grand narratives and ideologies of modernism, emphasizing the role of language, power dynamics, and cultural contexts in shaping our understanding of truth and reality.

Deconstruction

A philosophical and critical method that aims to dismantle and understand the underlying assumptions, ideas, and frameworks of literary texts, concepts, or institutions.

Linguistic Domination

The control or supremacy of one language over others, often leading to the marginalization of minority languages and cultures.