登录之后可查看解析

This is not the correct answer. Please see the correct answer for an explanation. We have been unable to determine how to calculate this incorrect answer choice. If you have calculated it, please let us know how you did it so we can create a full explanation of why this answer choice is incorrect. Please send us an email at support@hockinternational.com. Include the full Question ID number and the actual incorrect answer choice -- not its letter, because that can change with every study session created. The Question ID number appears in the upper right corner of the ExamSuccess screen. Thank you in advance for helping us to make your HOCK study materials better.
This is not the correct answer. Please see the correct answer for an explanation. We have been unable to determine how to calculate this incorrect answer choice. If you have calculated it, please let us know how you did it so we can create a full explanation of why this answer choice is incorrect. Please send us an email at support@hockinternational.com. Include the full Question ID number and the actual incorrect answer choice -- not its letter, because that can change with every study session created. The Question ID number appears in the upper right corner of the ExamSuccess screen. Thank you in advance for helping us to make your HOCK study materials better.
This is not the correct answer. Please see the correct answer for an explanation. We have been unable to determine how to calculate this incorrect answer choice. If you have calculated it, please let us know how you did it so we can create a full explanation of why this answer choice is incorrect. Please send us an email at support@hockinternational.com. Include the full Question ID number and the actual incorrect answer choice -- not its letter, because that can change with every study session created. The Question ID number appears in the upper right corner of the ExamSuccess screen. Thank you in advance for helping us to make your HOCK study materials better.
The expected value of Investment A is: ([$20,000] × .3) + ([$10,000] × .1) + ($30,000 × .3) + ($70,000 × .2) + ($100,000 × .1) = $26,000. The expected value of Investment B is: ([$20,000] × .2) + ([$10,000] × .2) + ($30,000 × .2) + ($70,000 × .2) + ($100,000 × .2) = $34,000. Since the weights of all the possible payoffs are the same for Investment B, this could also be calculated as a simple unweighted average: ([$20,000] + [$10,000] + $30,000 + $70,000 + $100,000) ÷ 5 = $34,000. The expected value of Investment C is: ([$20,000] × .3) + ([$10,000] × .1) + ($30,000 × .2) + ($70,000 × .3) + ($100,000 × .1) = $30,000. Thus, the ranking of the investments from highest payoff to lowest payoff is B, C, A. Note: If you forgot to use negative numbers for the first two possible payoffs in calculating the expected payoff from each investment, you would have chosen this answer as well. But your calculations would be incorrect. When you see a negative number as a possible value in an expected value calculation, it should be negative in your calculations.