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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Expected Values- Kapln 243-Qno.
Hi sir
I did not understood the following statement why it is true
“If a decision is made using expected values ,the return is maximised irrespective of the level of the risk”
I do not have the Kaplan Kit, only the BPP Revision Kit.
However the statement should read that the return is maximised ignoring the level of risk.
As I explain in my free lectures, expected values ignore the risk (the risk that the actual return may be higher or lower than the expected value).
okay thank you sir
You are welcome 🙂