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The Following Payoff Matrix Shows the Profit Outcomes for Three \quad

Question 39

Multiple Choice

The following payoff matrix shows the profit outcomes for three projects,A,B,and C,for each of two possible product prices.There is a 60% probability the price will be $10 and a 40% probability the price will be $20. \quad \quad \quad \quad \quad \quad \quad  Profit \text { Profit }
 Project  A  B  CP=$10204026P=$208060140\begin{array}{c}\begin{array}{c}\text { Project } \\\text { A } \\\text { B }\\\text { C}\end{array}\begin{array}{|c|}\hline P=\$ 10 \\\hline 20 \\\hline 40 \\\hline-26 \\\hline\end{array}\begin{array}{c|}\hline P=\$ 20 \\\hline 80 \\\hline 60 \\\hline 140 \\\hline\end{array}\end{array}
Using mean-variance analysis a decision maker would choose


A) A.
B) B.
C) C.
D) can't use this rule under these circumstances

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