An investor is considering how to invest her money. She has two optionseither a domestic mutual fund

Question:

An investor is considering how to invest her money. She has two options€”either a domestic mutual fund that only invests in blue chip stocks or an international aggressive mutual fund that invests in young technical firms. The payoff (profit) after one year for these investments depends on the state of the economy.

a) Compute the EV for each alternative decision.
b) Compute the SD for each decision.
c) Compute the CV and RRR for each decision.
d) Which mutual fund would you invest in and why?

Stocks
Stocks or shares are generally equity instruments that provide the largest source of raising funds in any public or private listed company's. The instruments are issued on a stock exchange from where a large number of general public who are willing...