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.