You have been offered an investment opportunity, which according to your calculation, has the following possible rate of return:

 

Probability:                    Rate of Return:

0.2                                -5%

0.6                                +10%

0.2                                +25%

 

You can also use your fund to buy a U.S. Treasury note, which will earn a certain 3.5%. In which of these two alternatives will you invest your money? which according to your calculation, has the following possible rate of return:

 

Probability:                    Rate of Return:

0.2                                -5%

0.6                                +10%

0.2                                +25%

 

You can also use your fund to buy a U.S. Treasury note, which will earn a certain 3.5%. In which of these two alternatives will you invest your money?

SophiaPretty

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Status NEW Posted 05 Sep 2017 11:09 AM My Price 6.00

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