please include formulas

B 1 (37) Consider the following irlvestments under the conditions depicted below: 2 4 Investment 1 Investment 2 5 Scenario Expected Value Probability Expected Value Probability 6 Very Optimistic 55,000 0.10 54,000 0.05 7 Optimistic 50,000 0.20 46,500 0.15 8 Most likely 45,000 0.40 45,500 0.70 9 Pessimistic 40,000 0.20 39,200 0.05 10 Very Pessimistic 35,000 0.10 30,300 0.05 11 12 13 a) Calculate the investments expected value, standard deviation and coefficient of variation 14 15 Investment 1 Investment 2 16 Expected value 17 Variance 18 Std deviation 19 Coefficient of variation 20 21 22 b) Explain the meaning of each of these measures 23 24 Expected value: 25 Variance: 26 Std. dev: 27 Coeff of variation: 28 29 30 31 c) Which investment would be preferred and why? 32 33 34 35 36 1-Hogs Inflation 2-Certainty equivalent 3-Probability Analysis 4- Feasibility + nu