- This topic has 1 reply, 2 voices, and was last updated 5 years ago by
.
- Posts
question
Hi this question is from past paper June 2016shoe co
Which ONE of the following statements is true, if a decision is made using expected
values?
A The risk is minimised for a set level of return
B The risk is minimised irrespective of the level of return
C The return is maximised for a given level of risk
D The return is maximised irrespective of the level of riskWhy have you headed up your post ‘target costing’? This question has nothing to do with target costing – is is a question on decision making under uncertainty.
The correct answer is D. I explain the reason in my free lectures on risk and uncertainty. (My lectures are a complete free course for Paper PM and cover everything needed to be able to pass the exam well.)
I assume that you found this question in your Revision Kit because the original exam question was in the old exam format and did not have any multiple choice question in it 🙂
- You must be logged in to reply to this topic.