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Problem 5: Zanussix Inc is considering an investment in one of two portfolios. Given the information that follows, which investment is better, based on risk

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Problem 5: Zanussix Inc is considering an investment in one of two portfolios. Given the information that follows, which investment is better, based on risk (as a measured by standard deviation) and the expected rate of return? Picture the problem, decide on a solution strategy, solve and analyze. (20 points) Portfolio A Probability Return 0,2 -2% 0,5 19% 0,3 25% Portfolio B Probability 0,1 0,3 0,4 0,2 Return 5% 7% 12% 14

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