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Here are the probability distributions for three investment project returns: Up (prob = Down (prob = 0.4) 0.6) -2% -2.5% 3% 14% -8% 5% Calculate
Here are the probability distributions for three investment project returns: Up (prob = Down (prob = 0.4) 0.6) -2% -2.5% 3% 14% -8% 5% Calculate the expected return and standard deviation of each project and explain which one a rational investor would choose. b)Given your answer in part a., if you can only split your investment by half, which two projects would you invest in, and what becomes the expected return and standard deviation of your portfolio
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