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Question 1: You earn 15% in year 1, 25% in year 2 and 20% in year 3, what is your 3-year net return? 72.5% O

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Question 1: You earn 15% in year 1, 25% in year 2 and 20% in year 3, what is your 3-year net return? 72.5% O 50% O 172.5% O 150% Question 2 Question 2: how to rank the following investments Investment 1: return--10% variance--5% Investment 2: return--20% variance--15% Investment 3: return--12% variance-20% Risk-free rate: 5% (by assumption) Reminder: convert variance to standard deviation first O 2>1>3 O 3>2>1 O 1>2>3 O 2>3>1

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