Question

1. when evaluating a project, which metric effectively combines risks and rewards?

a. variance
b. standard deviation
c. expected value
d. probability

Explanation:

Variance and standard - deviation measure the dispersion of data points around the mean, mainly related to risk in terms of volatility but do not directly combine rewards. Probability is a measure of the likelihood of an event occurring and doesn't inherently combine risks and rewards. The expected value takes into account the possible outcomes (rewards) and their associated probabilities, effectively combining risks (through probabilities) and rewards (outcomes).

Answer:

C. Expected value