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Investment Risk Assignment | Homework For You

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May 29th, 2020

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?Homework For You

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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. Get Finance homework help today

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