An investor is considering two investment options, A and B. Option A has a 70% chance of making a profit of $50,000 and a 30% chance of losing $10,000. Option B has a 60% chance of making a profit of $40,000 and a 40% chance of making a profit of $20,000. The investor is risk-averse and wants to minimize the risk of losing money. Which investment option should the investor choose based on the expected value and standard deviation of each option?

Answer rating: 100% (QA)

The detailed answer for the above question is provided below The expected value of option A can be c... View the full answer