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    Decision making using expected value and std deviation

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    An investor is considering two investments, an office building and bonds. The possible returns from each investment and their probabilities are listed as follows. Using expected value and standard deviation as a basis for comparison, discuss which of the two investments should be selected.

    Office Building Bonds
    Returns Probabilities Returns Probabilities
    $50,000 .30 $30,000 .60
    $60,000 .20 $40,000 .40
    $80,000 .10 1.00
    $10,000 .30
    0 .10
    1.00

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    https://brainmass.com/statistics/quantative-analysis-of-data/decision-making-using-expected-value-and-std-deviation-110946

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    Office Building Bonds
    Returns Probabilities Returns Probabilities
    $50,000 .30 $30,000 .60
    $60,000 .20 $40,000 ...

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