We have discussed that we demand a higher expected return when there is more risk Accordingly, which security (US Water or Martin Products) do you prefer? Why?

3. We have discussed that we demand a higher expected return when there is more risk. Accordingly, which security (US Water or Martin Products) do you prefer? Why? Note. The askumptions regarding the probabitties of valous cutcomes have been changed from those in Figure 82 . There the probablity of obtaining exactly 10 was 40 where it is much smaller because there are many possible outcomes instead of furt three. Wist continucus datributions, it is more appropriate to ask what the probsablity is of obeaining at least some specilied rate of return thun to ark what the probability is of obtaining exactly that rate. This topic is covered in detail in statibics courses