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Which of the following two investments would a risk seeker choose: Investment A with an expected outcome of $1000 and standard deviation of $500, or
Which of the following two investments would a risk seeker choose: Investment A with an expected outcome of $1000 and standard deviation of $500, or Investment B with an expected outcome of $1000 and standard deviation of $200?
a.Investment A because it offers the chance of more wealth.
b. Investment A because the downside risk is greater.
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