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CIMAPRO19-P01-1 Exam - Topic 3 Question 129 Discussion

Company LGF seeks to maximize profits and has a 'risk seeker' attitude when making decisions. The company has to choose between mutually exclusive projects. A range of possible profit outcomes has been estimated for each project along with their associated probabilities.Company LGF would choose the project with the:
A) Best possible outcome irrespective of the standard deviation.
B) Highest expected value irrespective of the standard deviation.
C) Highest standard deviation irrespective of the best possible outcome.
D) Highest standard deviation irrespective of the expected value.

CIMAPRO19-P01-1 Exam - Topic 3 Question 129 Discussion

Actual exam question for CIMA's CIMAPRO19-P01-1 exam
Question #: 129
Topic #: 3
[All CIMAPRO19-P01-1 Questions]

Company LGF seeks to maximize profits and has a 'risk seeker' attitude when making decisions. The company has to choose between mutually exclusive projects. A range of possible profit outcomes has been estimated for each project along with their associated probabilities.

Company LGF would choose the project with the:

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Suggested Answer: A

by Armando at Jun 28, 2026, 08:45 AM

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King
9 hours ago
B shows a clear strategy for profit.
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Herminia
6 days ago
D is too risky for me. I’d stick with B.
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Johana
11 days ago
C sounds risky, but I get the appeal of high returns.
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Bettyann
16 days ago
A is tempting, but I’d still go with B.
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Lashawna
21 days ago
Agreed, B makes sense for profit maximization.
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Kaitlyn
26 days ago
I think B is the best choice. Highest expected value is key.
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Johana
1 month ago
I didn't think LGF would focus on expected value over outcomes!
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Craig
1 month ago
Wait, why would anyone choose based on standard deviation?
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Micah
1 month ago
Definitely B, expected value is key for a risk seeker.
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Jeffrey
2 months ago
I disagree, A sounds more appealing for big wins!
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Rosendo
2 months ago
B is the way to go for maximizing expected profits!
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Mitsue
2 months ago
I’m leaning towards A, but I’m not confident. It’s tricky because the best outcome doesn’t always mean it’s the most profitable overall.
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Jesusa
2 months ago
I feel like they might choose the project with the highest standard deviation because they’re risk seekers. But then again, does that really maximize profits?
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Roxane
2 months ago
I remember a practice question where we had to choose based on expected value too. It seems like B makes the most sense, but I could be wrong.
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Xuan
2 months ago
I think LGF would go for the highest expected value since they want to maximize profits, but I'm not entirely sure how the risk-seeking attitude plays into that.
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