Handwritten Please not in Excel

Question 2 (36 marks) Tom Fears is highly risk-averse but Sonny Outlook actually enjoys taking a risk. They are each looking at 4 different investments. The investments each have 4 different possible outcomes with different likelihoods of each occurring Based solely on his attitude towards risk, which of the four investments should Tom a. choose and why? Based solely on his attitude towards risk, which of the four investments should Sonny b. choose and why? Possibility 20% Company A $ Possible Outcomes Company B 6,100 $ 6,600 15% Company C Company D 4,600 $ 3,000 $ 5,000 4.800 3,400 6,300 5,200 4,000 6,700 5,500 4,300 7,300 25% 6,700 40% 7,200