Without any formal computations, do you consider Madison Beer in Problem 6 or Lauren Computer in Problem 7 to present greater risk? Discuss your reasoning. 

Problem 6

Problem 7

A stockbroker calls you and suggests that you invest in the Lauren Computer Company. After analyzing the firm's annual report and other material, you believe that the distribution of expected rates of return is as follows:

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Madison Beer Corp. Possible Rate of Return Probability -0.10 0.30 0.00 0.10 0.10 0.30 0.25 0.30