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Amy is comparing two investments that are being offered to her. Below are particulars of those investments: Investment A Investment B Probability Return Probability Return
Amy is comparing two investments that are being offered to her.
Below are particulars of those investments:
Investment A |
| Investment B |
|
Probability | Return | Probability | Return |
0.50 | 9% | 0.10 | -5% |
0.30 | 10% | 0.60 | 45% |
0.20 | 15% | 0.30 | 25% |
Based on the information given, help Amy to calculate the following:
Expected rate of return
Standard deviation
Coefficient of variation
Determine the best investment for Amy if she is a risk seeker.
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