Business
Business, 25.04.2020 03:22, kait93

An investor is considering two investment, an office building and bonds. He can only invest on of them. The possible return from each investment and their probability are as follows: Office Building Return Probability $50000 0.3 60000 0.2 80000 0.1 10000 0.3 0 0.1 Bonds Return Probability $30000 0.6 40000 0.4 1) Calculate the expected return and variance of investing in office building. 2) Calculate the expected return and variance of investing in bonds. 3) If you were the investor, which one you will choose base on the expected return? Briefly

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