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Investment A Investment B Probability Return (%) Probability Return (%) 0.15 -3 0.05 3 0.20 2 0.15 -3 0.25 9 0.35 6 0.40 6 0.45
Investment A | Investment B | ||
Probability | Return (%) | Probability | Return (%) |
0.15 | -3 | 0.05 | 3 |
0.20 | 2 | 0.15 | -3 |
0.25 | 9 | 0.35 | 6 |
0.40 | 6 | 0.45 | 8 |
1A. Based on the above information, which investment will you choose? Explain your answer based on the risk and return analysis.
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