You are considering two investments plans, Plan A and Plan B, each with three possible outcomes /returns High, Average, Low with the following probabilities: High (probability= 0.3); Average (probability= 0.5); Low (probability= 0.2). The profits for each investment plan under the three possible outcomes are:

Outcome (Returns)	Plan A	Plan B
High	$250,000	$400,000
Average	$220,000	$230,000
Low	$140,000	$20,000

a. Calculate the expected value for each investment plans A and B.

b. Which alternative is riskier? Explain. (Calculate the standard deviation of profits.)

c. Taking into account risk, explain which investment Plan, A or B, you should choose.