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6 Q.7 Calculate the risk and return of investing in assets A and B. As an investor, which option is better for you? (i.e. investing

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6 Q.7 Calculate the risk and return of investing in assets A and B. As an investor, which option is better for you? (i.e. investing in only A or only B) Returns for Assets A and B Probability Asset A Asset B Returns Possible Outcomes Returns Pessimistic 0.3 6 8 Most likely 0.4 10 12 Optimistic 0.3 15 16

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