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Question 9 State 1 2 3 Return% 3 7 Return % 3 4 5 7 9 10 18 7.88 B Return % Prob 4 0.15
Question 9 State 1 2 3 Return% 3 7 Return % 3 4 5 7 9 10 18 7.88 B Return % Prob 4 0.15 8 0.2 10 0.35 11 0.2 13 0.1 Prob 0.02 0.03 0.1 0.5 0.2 0.1 0.05 9 Prob 0.25 0.25 0.25 0.25 15 5 Avg. 9.20 8.50 If RL equals 5%, what is the preferred investment shown in the table above using Roy's safety-first criterion? A. Investment A B. Investment B C. Investment O D. None of the above O E More than one of the investments
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