Question: Before making your final decision whether to invest in FastForward Funds or SolidState Securities, you consult your colleague in the risk management department of your
Before making your final decision whether to invest in FastForward Funds or SolidState Securities, you consult your colleague in the risk management department of your company. She informs you that, in the event of a stock market crash, the following probability distributions for next year's rate of return would apply. Calculate the expected rate of return in the event of a market crash for the two funds.
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