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

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