Consider the following investments and their expected returns and standard deviations of expected returns. Investment Expected Return Standard Deviation 1 10% 10% 2 11% 10% 3 9% 9% 4 11% 9% 5.1 Considering that you are a risk averse investor, which investment would you prefer from each of the following pairs? (4) (a) 1 and 2? (b) 2 and 4? (c) 3 and 4? (d) 1 and 4? 5.2 Suppose you are offered two investments with the following expected cash flows. Economic Scenario Boom Normal Bust Probability of scenario 20% 50% 30% Possible Outcome Investment 1 R1000 R750 R250 Possible Outcome Investment 2 R1200 R750 R117 5.2.1 Calculate the expected returns for each investment. (4) 5.2.2 Calculate the standard deviation for each investment's possible outcomes. (8) 5.2.3 Which investment is riskier? Explain your answer. (4)