Question: A B C State Return % Prob Return % Prob Return % Prob 1 3 0.02 4 0.15 3 0.25 2 4 0.03 8 0.2

A

B

C

State

Return %

Prob

Return %

Prob

Return %

Prob

1

3

0.02

4

0.15

3

0.25

2

4

0.03

8

0.2

7

0.25

3

5

0.1

10

0.35

9

0.25

4

7

0.5

11

0.2

15

0.25

5

9

0.2

13

0.1

6

10

0.1

7

18

0.05

Avg.

7.88

9.20

8.50

If RL equals 5% and equals 10%, what is the preferred investment shown in the table above using Telsers safety-first criterion?

A.

Investment A
B.

Investment B
C.

Investment C
D.

None of the above
E.

More than one of the investments

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