Question: Copy of B Return % State 1 2. Return % 3 4 A Return % 3 4 5 7 7 Prob 0.02 0.03 0.1 0.5

 Copy of B Return % State 1 2. Return % 3

Copy of B Return % State 1 2. Return % 3 4 A Return % 3 4 5 7 7 Prob 0.02 0.03 0.1 0.5 0.2 0.1 0.05 Prob 0.15 0.2 0.35 0.2 0.1 3 Prob 0.25 0.25 0.25 0.25 8 10 11 13 9 4 15 9 5 6 7 10 18 7.88 Avg. 9.20 8.50 If RL equals 5% and a now equals 20%, what is the preferred investment shown in the table above using Telser's safety-first criterion? A. Investment A B. Investment B C. Investment C OD. None of the above E. More than one of the investments

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