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Tom Fears is highly risk-averse but Sonny Outlook actually enjoys taking a risk. They are each looking at 4 different investments. The investments each have
Tom Fears is highly risk-averse but Sonny Outlook actually enjoys taking a risk. They are each looking at 4 different investments. The investments each have 4 different possible outcomes, with different likelihoods of each occurring Based solely on his attitude towards risk, which of the four investments should Tom a choose and why? Based solely on his attitude towards risk, which of the four investments should Sonny choose and why? b Company A Possibility 25% 20% 30% 25% Possible Outcomes Company B 3,000 $ 3,500 3,700 4.000 Company C Company D 5,600 $ 5,400 $ 3,100 5,900 5,600 6,500 6.100 6,200 6,700 6,300 6,500 7.600
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