Consider two investments: Investment 1 has a 50% chance of producing a return of 10% and a 50% chance of producing a return of 35% Investment 2 has a 50% chance of producing a return of 15% and a 50% chance of producing a return of 25% Which of the following statements regarding the investments is TRUE?
Investment 1 is riskier than Investment 2 Investment 1 and Investment 2 have the same amount of risk Investment 2 is riskier than Investment 3 Investment 1 is a better investment because it has the potential to produce the highest returns
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