Compute the expected return, standard deviation, and value at risk for each of the following investments:

Investment (A): Pays $800 three-fourths of the time and a $1200 loss otherwise.

Investment (B): Pays $1000 loss half of the time and a $1600 gain otherwise.

State which investment will be preferred by each of the following investors, and explain why. (5 points).

(i) a risk-neutral investor.

(ii) an investor who seeks to avoid the worst-case scenario.

(iii) a risk-averse investor