The difference between expected payoff under certainty and expected payoff under risk is the:
A)expected monetary value.
B)expected value of perfect information.
C)expected net present value.
D)expected rate of return.
E)incremental rate of return

Question

Quizplus · Accepted Answer

The difference between the expected payoff under certainty and the expected payoff under risk is known as the expected value of perfect information. This measures the value of having complete information to make a decision without any uncertainty.

The Difference Between Expected Payoff Under Certainty and Expected Payoff