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Congo Plc is considering two assets which are mutually exclusive for the expansion of its investment portfolios. Details of the assets are as under: ASSET
Congo Plc is considering two assets which are mutually exclusive for the expansion of its investment portfolios. Details of the assets are as under:
ASSET A
Condition | Probability | Possible return |
Sunny | 0.1 | 10% |
Windy | 0.36 | 11% |
Rainy | 0.24 | 9% |
Dry | 0.16 | 7% |
Humid | 0.09 | 10.2% |
Cloudy | 0.05 | 6.8% |
ASSET B
Condition | Probability | Possible return |
Sunny | 0.14 | 10.1% |
Windy | 0.39 | 12% |
Rainy | 0.21 | 11% |
Dry | 0.15 | 8% |
Humid | 0.03 | 7.7% |
Cloudy | 0.08 | 13% |
Required
Which asset will be selected? Use an appropriate risk measure
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