Question: A B C Prob Outcome % Prob Outcome % Prob Outcome % 0.4 3 0.1 5 0.1 5 0.3 4 0.2 6 0.1 7 0.1

A B C
Prob Outcome % Prob Outcome % Prob Outcome %
0.4 3 0.1 5 0.1 5
0.3 4 0.2 6 0.1 7
0.1 6 0.1 8 0.2 8
0.1 7 0.2 9 0.2 9
0.1 9 0.4 10 0.4 11

Using the following information, which investment would be most preferred using Roy's safety first criterion, if RL=7%.

Either B or C (indistinguishable)

Only B

Only A

Either A or B (indistinguishable)

Only C

Either A or C (indistinguishable)

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