Which of the two investments is more risky

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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 the individual 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: EM13186786

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