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.
D