Question: 4. Given the information presented in Table A2.4, how would a producer decide on which enterprise to undertake if they made decisions based on the


4. Given the information presented in Table A2.4, how would a producer decide on which enterprise to undertake if they made decisions based on the following criteria. a. Highest mean returns b. Highest lower bound of returns (two standard deviations below the mean) c. Lowest risk per dollar of returns d. Assume that the manager can combine A and B in any combination. Calculate the expected returns, standard deviation, coefficient of variation, and lower bound for the following combinations of A and B. i. 75% to A and 25% to B ii. 50% to A and 50% to B iii. 25% to A and 75% to B. e. Based on your answers to d, how would you advise the manager to allocate resources if their goal was to i. Maximize profit ii. Minimize risk Table A2.4. Net returns for two different crops
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