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Refer to the Following:
the Following Table Shows the Expected

Question 49

Multiple Choice

Refer to the following:
The following table shows the expected value and variance for 5 projects a firm can undertake.
 Praiecl  Expeted Value  Variance A$100$124B$220$110C$100$138D$180$138E$200$124\begin{array} { c c c } \text { Praiecl } & \text { Expeted Value } & \text { Variance } \\\hline A & \$ 100 & \$ 124 \\B & \$ 220 & \$ 110 \\C & \$ 100 & \$ 138 \\D & \$ 180 & \$ 138 \\E & \$ 200 & \$ 124\end{array}
-Which of the following is (are) correct if the mean-variance rule is used for the decision?


A) Project C is preferable to A.
B) Project E is preferable to B.
C) Project D is preferable to C.
D) all of the above
E) none of the above

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