ces One last time, consider Jerry: Jerry is considering an investment that can take one of four possible values, as described below: Outcome Probability Payoff $100 $200 $400 $500 B O D ?? 0.3 0.25 0.1 Let's call the investment described above Investment A. Jerry is also considering another investment, Investment B, which has a standard deviation of $150. than Investment B's, so Investment A's standard deviation is more risk, all else equal. O higher; Investment A O lower; Investment B O lower; Investment A O higher; Investment B has

One last time, consider Jerry: Jerry is considering an investment that can take one of four possible values, as described below: Let's call the investment described above Investment A. Jerry is also considering another investment, Investment B, which has a standard deviation of $150. Investment A's standard deviation is than Investment B's, so more risk, all else equal. higher; Investment A lower, Investment B lower; Investment A higher; Investment B