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Evaluation of Two Projects Has Shown for Project X a Return

Question 27

Multiple Choice

Evaluation of two projects has shown for Project X a return of £10m with a 0.8 probability and a return of 0 with probability 0.2, while Project Y has a return of £20m with a probability of 0.5 and a return of 0 with the same probability. What is the expected return?


A) £21m
B) £18m
C) £30m
D) £2m

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