Question
A B C Return % Prob Return % Prob Return % Prob 5 0.33 4 0.25 1 0.2 6 0.33 7 0.5 9 0.6 9
| A | B | C | |||
| Return % | Prob | Return % | Prob | Return % | Prob |
| 5 | 0.33 | 4 | 0.25 | 1 | 0.2 |
| 6 | 0.33 | 7 | 0.5 | 9 | 0.6 |
| 9 | 0.33 | 10 | 0.25 | 18 | 0.2 |
If RL equals 5%, what is the preferred investment shown in the table above using Roys safety-first criterion?
| A. | Investment A | |
| B. | Investment B | |
| C. | Investment C | |
| D. | None of the above |
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Finance For Nonfinancial Managers
Authors: Gene Siciliano
2nd Edition
0071824367, 978-0071824361
