Please answer the following questions: 1. How does standard deviation help us measure the riskness of an investment? 2. Does a greater risk imply a bad investment? Give me some example. 3. Albert Pujols hit 47 home runs in 2009. If his home-run output grew at a rate of 12 percent per year, what would it have been over the following 5 years? 4. If you were offered $1,079.50 10 years from now in return for an investment of $500 currently, what annual rate of interest would you earn if you took the offer? 5. You are considering two investments, X and Y. The distributions of possible returns are shown below: PROBABILITY 0.05 0.25 POSSIBLE RETURNS INVESTMENT X INVESTMENT Y -109 096 5% 5% 20% 16% 3096 24% 40% 32% 0.40 0.25 0.05 Compute the expected return and standard deviation for each investment. Do you have a preference for one investment over the other if you were making the decision