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Fin 2200. Assignment 1 Suppose you have $1,000 to invest in a project. There are two possibilities when you invest in this project. Possibilities #1

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Fin 2200. Assignment 1 Suppose you have $1,000 to invest in a project. There are two possibilities when you invest in this project. Possibilities #1 #2 Probability 0.4 0.6 Payoff $1,200 $900 Using the table above, calculate (1) expected value, (2) variance, (3) standard deviation, (4) based on the standard deviation, is the project risky

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