Using Excel ’ s statistical tools , calculate the standard deviation of the distribution of each investment .
Which of the two investments is more risky ? Which investment should the individual choose ?
Spreadsheet Problem 2 : An individual is considering two investment projects . Project A will return a zero profit if conditions are poor , a profit of $ 4 if conditions are good , and a profit of $ 8 if conditions are excellent . Project B will return a profit of $ 2 if conditions are poor , a profit of $ 3 if conditions are good , and a profit of $ 4 if conditions are
Using Excel ’ s statistical tools , calculate the standard deviation of the distribution of each investment .
Which of the two investments is more risky ? Which investment should the individual choose ?
Spreadsheet Problem 2 : An individual is considering two investment projects . Project A will return a zero profit if conditions are poor , a profit of $ 4 if conditions are good , and a profit of $ 8 if conditions are excellent . Project B will return a profit of $ 2 if conditions are poor , a profit of $ 3 if conditions are good , and a profit of $ 4 if conditions are