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An individual has to choose between investment A and investm

Paper help Economics An individual has to choose between investment A and investm

Economics

An individual has to choose between investment A and investm

An individual has to choose between investment A and investment B. The individual estimates that the… Show more An individual has to choose between investment A and investment B. The individual estimates that the income and probability of the income from each investment are as given in the following table: Investment A Investment A Investment B Investment B Income Probability Income Probability $4,000 0.2 $4,000 0.3 $5,000 0.3 $6,000 0.4 $6,000 0.3 $8,000 0.3 $7,000 0.2 (a) Using Excel’s statistical tools, calculate the standard deviation of the distribution of each investment. (b) Which of the two investments is more risky? (c) Which investment should the individual choose? • Show less

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