In: Finance
Which of the following investments is riskier? Why?
Probability | Rate of | Rate of | Rate of |
of Occurrence | Return | Return | Return |
A | B | C | |
0.20 | 2.00% | 4.00% | 2.00% |
0.25 | 4.00% | 4.00% | 2.30% |
0.40 | 5.50% | 4.50% | 6.00% |
0.15 | 6.00% | 6.00% | 7.50% |