In which investment would the element of risk be less

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Reference no: EM131559480

Question: INVESTMENT ANALYSIS Rosa Walters is considering investing $10,000 in two mutual funds. The anticipated returns from price appreciation and dividends (in hundreds of dollars) are described by the following probability distributions:

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a. Compute the mean and variance associated with the returns for each mutual fund.

b. Which investment would provide Rosa with the higher expected return (the greater mean)?

c. In which investment would the element of risk be less (that is, which probability distribution has the smaller variance)?

Reference no: EM131559480

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