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Consider two investments: 1 Investment 1 has a 50 percent chance of producing a return of zero and a 50 percent chance of producing a
Consider two investments: 1 Investment 1 has a 50 percent chance of producing a return of zero and a 50 percent chance of producing a return of 40 percent. Investment 2 has a 50 percent chance of producing a return of 10 percent and a 50 percent chance of producing a return of 30 percent. Which of the following statements regarding the investments is TRUE? 00:29:34 Multiple Choice Investment 1 is riskier than Investment 2. Investment 1 is a better investment because it has the potential to produce the highest returns. Investment 1 and Investment 2 have the same amount of risk. Investment 2 is riskier than Investment 1. C 100 E 71
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