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Decision making using expected value and std deviation

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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