Question: Consider the following two assets. Calculate the expected return for each and the standard deviation. Which one carries the greatest risk? Why? Asset A Asset

Consider the following two assets. Calculate the expected return for each and the standard deviation. Which one carries the greatest risk? Why?

Asset A

Asset B

Probability

Payoff

Probability

Payoff

0.4

0.12

0.2

0.115

0.5

0.085

0.5

0.1

0.1

-0.02

0.3

0

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