Question: A B C Return % Prob Return % Prob Return % Prob 5 0.33 4 0.25 1 0.2 6 0.33 7 0.5 9 0.6 9

A

B

C

Return %

Prob

Return %

Prob

Return %

Prob

5

0.33

4

0.25

1

0.2

6

0.33

7

0.5

9

0.6

9

0.33

10

0.25

18

0.2

If RL equals 5%, what is the preferred investment shown in the table above using Roys safety-first criterion?

A.

Investment A
B.

Investment B
C.

Investment C
D.

None of the above

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