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11. Consider the following investments: Investment A Investment B Investment C Return (%) Probability 3 0.4 4 0.3 Return (%) 4 6 Probability 0.1 0.2
11. Consider the following investments: Investment A Investment B Investment C Return (%) Probability 3 0.4 4 0.3 Return (%) 4 6 Probability 0.1 0.2 0.1 0.2 0.4 Return (%) Probability 5 0.1 7 0.1 8 0.2 9 0.2 11 0.4 6 8 0.1 0.1 7 9 9 0.1 10 If Rt. equals 7% what is the order of preference of the three investments using Roy's Safety-first criterion? Show Clearly why. (4 Points)
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