CDIM 6305-The possible annual percentage return of two investments
June 7th, 2024
The possible annual percentage return of two investments, Investment A and Investment B. share a common probability distribution, given below.ProbabilityReturn of Investment AReturn of Investment B0.1019.3-9.10.0512.8-4.30.355.60.40.200.97.80.25-0.614.10.05-5.420.5(A) What is the expected annual return of each investment?(B) What is the standard deviation of the annual return of each investment?(C) On the basis of your answers to (A) and (B), which of these investments would you prefer? Explain your choice.(D) Are the annual returns of these two investments positively or negatively associated with each other? How might the answer to this question influence your decision to purchase shares?