Which investment should the individual choose

Reference no: EM13186754

An individual has to choose between investment A and investment B. The individual estimates that the income an dprobability of the income from each investment are as given in the following table (a)Using Excel statistical tools, calculate the standard deviation of the distribution of each investment. (b) Which of the two investments is more risky? (c) Which investment should th eindividual choose?

Investment A Investment B

Income Probability Income Probability

$4,000 0.2 $4,000 0.3

5,000 0.3 6,000 0.4

6,000 0.3 8,000 0.3

7,000 0.2

Reference no: EM13186754

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