Question: Part 1. Risk... Return, and Risk Aversion Exercise {Total 5|] points] You are considering whether to invest in a risk},P portfolio {P}. whose endofyear cash

Part 1. Risk... Return, and Risk Aversion
Part 1. Risk... Return, and Risk Aversion Exercise {Total 5|] points] You are considering whether to invest in a risk},P portfolio {P}. whose endofyear cash ow is expected to he $| li. Sl 10,0001 or $35,000 with probabilities I]. IS, [Lil], and [1.35, respectively. Your alternative option is to invest in a oneyear risk-free TreasuryP hill {F} offering a rate of return of 5% [gr]. I. (Ill points] What are the expected value and the standard deviation of the endofjrear cash flow from the risky investment

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