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You Are Going to Invest All of Your Funds in One

Question 126

Multiple Choice

You are going to invest all of your funds in one of three projects with the following distribution of possible returns:
You are going to invest all of your funds in one of three projects with the following distribution of possible returns: If you are a risk averse investor,which one should you choose? A) Project 1 B) Project 2 C) Project 3 D) Either Project 1 or Project 2 because they have the same expected return. If you are a risk averse investor,which one should you choose?


A) Project 1
B) Project 2
C) Project 3
D) Either Project 1 or Project 2 because they have the same expected return.

Correct Answer:

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