A risk-averse manager is considering a project that will cost $100. There is a 10 percent chance the project will generate revenues of $100, an 80 percent chance it will yield revenues of $50, and a 10 percent chance it will yield revenues of $500. Should the manager adopt the project? Explain© BrainMass Inc. brainmass.com October 25, 2018, 2:10 am ad1c9bdddf
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Risk Taker or Risk Aversion
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