Question: Table 7 gives the probability distribution for the possible returns from two different investments. (a) Compute the mean and the variance for each investment. (b)

Table 7 gives the probability distribution for the possible returns from two different investments.
(a) Compute the mean and the variance for each investment.
(b) Which investment has the higher expected return (i.e., mean)?
(c) Which investment is less risky (i.e., has lesser variance)?

Table 7 Investment A Investment B Return Return (S millions) Probability ($ millions) Probability -10 .2 .3 .2 20 10 .4 25 .6 30 3

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