5) You are going to invest all of your funds in one of three projects with the following distribution of possible returns: Project 1 Project 2 Standard Deviation 12% Standard Deviation 19.5% Probability Return Probability Return 50% Chance 20% 30% Chance 30% 50% Chance -4% 40% Chance 10% 30% Chance -20% Project 3 Standard Deviation 12% Probability Return 10% Chance 30% 40% Chance 15% 40% Chance 10% 10% Chance -21%

If you are a risk-averse investor, which one should you choose? A) Project 1 B) Project 2 C) Project 3 D) None of the above