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20) 20) You are going to invest all of your funds in one of three projects with the following distribution of possible returns: Project 1

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20) 20) You are going to invest all of your funds in one of three projects with the following distribution of possible returns: Project 1 Standard Deviation 12% Probability 50% Chance 50% Chance Project 2 Standard Deviation 19.5% Probability 30% Chance 40% Chance 30% Chance Return 20% 4% Return 30% 10% 20% Project 3 Standard Deviation 15% Probability 10% Chance 40% Chance 40% Chance 10% Chance Return 30% 15% 10% 21% If you are a risk-averse investor, which one should you choose? A) Project A C) Project C B) Project B D) None of the above

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