A company has a choice of three investment schemes. Option I gives a sure $25,000 return on investment.

A company has a choice of three investment schemes. Option I gives a sure $25,000 return on investment. Option II gives a 50% chance of returning $50,000 and a 50% chance of returning $10,000. Option III gives a 5% chance of returning $100,000 and a 95% chance of returning nothing. Which option should the company choose?

(A) Option II if it wants to maximize expected return

(B) Option I if it needs at least $20,000 to pay off an overdue loan

(C) Option III if it needs at least $80,000 to pay off an overdue loan

(D) All of the above answers are correct.

(E) Because of chance, it really doesn’t matter which option it chooses.

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High-performing teams are teams whose members have specific roles and complementary talents and skills and are aligned in purpose such that they consistently produce superior results

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You are a line manager in a medium-size marketing organisation that creates innovative visuals for companies.

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