Question
XYZ Corporation has $10M to invest. There are three investment opportunities they are considering. Each opportunity requires $10M investment. Which investment should XYZ pursue?
XYZ Corporation has $10M to invest. There are three investment opportunities they are considering. Each opportunity requires $10M investment. Which investment should XYZ pursue?\ \ Investment A:\ \ Probability / Outcome\ \ .50 / 15%\ \ .35 / 7.5%\ \ .15 / -10%\ \ Investment B:\ \ Probability / Outcome\ \ .45 / 15%\ \ .45 / 7.5%\ \ .10 / -10%\ \ Investment C:\ \ Probability / Outcome\ \ .45 / 20%\ \ .45 / 5%\ \ .10 / -10%\ \ Group of answer choices\ \ Investment A\ \ Investment B\ \ Investment C\ \ All of the above\ A resort hotel has $20,000,000 to invest it its next location. There are three potential sites for the expansion. The cost to build the facility in any of the locations is $20,000,000. Which location should be selected?\ \ Location A:\ \ Probability / Outcome\ \ .50 / 20%\ \ .30 / 9%\ \ .20 / -10% \ \ \ \ Location B:\ \ Probability / Outcome\ \ .40/ 19%\ \ .32 / 7.5%\ \ .28 / -11% \ \ \ \ Location C:\ \ Probability / Outcome\ \ .45 / 22%\ \ .50 / 6%\ \ .05 / -15% \ \ Group of answer choices\ \ Location A\ \ Location B\ \ Location C\ \ Any of the above
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