4 In determining where to invest my money, two objectives—expected rate of return and degree of risk—are considered equally important. Two investments (1 and 2)

have the following pairwise comparison matrices: Expected return:

a How should I rank these investments?
b Now suppose another investment (investment 3) is available. Suppose the pairwise comparison matrices for these investments are as follows. Expected return:

c Observe that the entries in the comparison matrices for investments 1 and 2 have not changed. How should I now rank the investments? Contrast my ranking of investments 1 and 2 with the answer from part (a).

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Investment 1 Investment 2 Degree of risk: Investment Investment 2 [ 1 2 121 } ] Investment Investment 2 Investment 1 1 3 Investment 2 I 3 1 } ]