Suppose you are the risk manager of a construction company, and you have identified three possible projects with the following probabilities and returns:

Project A: 40% chance of $50,000 profit
Project B: 30% chance of $70,000 profit
Project C: 30% chance of $100,000 profit

What is the expected profit of each project, and which project would you recommend based on the expected profit?

Answer rating: 100% (QA)

The detailed answer for the above question is provided below To calculate the expected profit of each project we need to multiply each profit by its p... View the full answer