Question
You are trying to decide how best to invest some money that your grandmother gave you for your birthday. You consult a financial advisor and
You are trying to decide how best to invest some money that your grandmother gave you for your birthday. You consult a financial advisor and narrow your options down to two choices. You can either invest your money in Share A, which is known to be equally likely to yield an annual return anywhere in the interval between -2% and 15%, or you can put your money in a risk-free savings account which is guaranteed to produce an annual return of 6.0%. What is the probability that you would be better off investing in the savings account rather than the share over the next year?
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