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0.3 5,000 0.3 6,000 0.4 6,000 0.3 8,000 0.3 7,000 0.2
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

0.3 5,000 0.3 6,000 0.4 6,000 0.3 8,000 0.3 7,000 0.2

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