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calculate the risk and return of investing in assets A and B. As an investor, which option is better for you? (i.e. investing in only
calculate the risk and return of investing in assets A and B. As an investor, which option is better for you? (i.e. investing in only A or only B or A and B both)
Returns for assets A and B:
possible outcomes | probability | asset A returns | asset B returns |
---|---|---|---|
pessimistic | 0.3 | 5 | 4 |
most likely | 0.4 | 11 | 8 |
optimistic | 0.3 | 14 | 11 |
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