Assignment Chapters 5
1. If you invest $1,500 and you expect the following payoffs
with correlating probability
$300.00 .3 $1500.00 .3 $1800.00. .3 $3500.00 .1
Calculate the the Expected value, Standard deviation, and
Variance of each.
2. If you invest $1,500 and you expect the following payoffs
with correlating probability
$600.00 .1 $1500.00 .5 $1800.00. .2 $2500.00 .2
Calculate the the Expected value, Standard deviation, and
Variance of each. Which investment would you choose? Which one is
riskier?