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Three securities have the characteristics described in the following table: A B C Return % Prob Return % Prob Return % Prob 8 0.2 5
Three securities have the characteristics described in the following table:
A | B | C | |||
Return % | Prob | Return % | Prob | Return % | Prob |
8 | 0.2 | 5 | 0.03 | 9 | 0.15 |
10 | 0.2 | 7 | 0.03 | 11 | 0.2 |
12 | 0.2 | 11 | 0.35 | 13 | 0.25 |
15 | 0.2 | 14 | 0.4 | 14 | 0.25 |
18 | 0.2 | 16 | 0.19 | 18 | 0.15 |
If RL equals 10% and now equals 20%, what is the preferred investment shown in the table above using Telsers safety-first criterion?
A | ||
B | ||
C | ||
None of the above | ||
All are equally desirable |
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