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B A Return % 5 Return % 4 Prob 0.33 0.33 0.33 Prob 0.25 0.5 0.25 Return % 1 9 Prob 0.2 0.6 0.2 6
B A Return % 5 Return % 4 Prob 0.33 0.33 0.33 Prob 0.25 0.5 0.25 Return % 1 9 Prob 0.2 0.6 0.2 6 7 9 10 18 If RL equals 5%, what is the preferred investment shown in the table above using Roy's safety-first criterion? A. Investment A B. Investment B C. Investment C D. None of the above
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