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Question 4. Suppose that two investments have the same three payoffs, but the probability associated with each payoff differs, as illustrated in the table below:

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Question 4. Suppose that two investments have the same three payoffs, but the probability associated with each payoff differs, as illustrated in the table below: Payoff Probabilities for Investment A Probabilities for Investment B $600 0.1 0.3 $500 0.8 0.4 $400 0.1 0.3 a) (10 points) Find the expected return of each investment. b) (10 points) Find the standard deviation of each investment. c) (10 points) Bob has the utility function U = 512, where I denoted the payoff. Which investment will Bob choose? d) (10 points) Sarah has the utility function U = 2VI. Which investment will Sarah choose? e) (10 points) Cathy has the utility function U = 21. Which investment will Cathy choose

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