Both assets depend on the state of the local economy. Three possible developments of the state of the local economy for

the next couple of years are relevant. Upsize, downsize and remain.

For decision making the company is only interested in Risk &$.$ Return. Stand dev of asset $Y$ is $4\mathrm{.}89!$

Required:

Using only return as decision variable, what asset is preferable?

Using only risk as investment criterium, what assets is preferable? Use the standard deviation as a measure of

risk.

Calculate the Return$-$Risk ratio and advice in what asset should be invested?

What other factor should be considered next to risk and return to determine the best investment for company

ABC?