You Are Going to Invest All of Your Funds in One

question 65

Multiple Choice

You are going to invest all of your funds in one of three projects with the following distribution of possible returns:
PROJECT 1 PROJECT 2

PROJECT 3

If you are a risk averse investor,which one should you choose?

• A) Project 1
• B) Project 2
• C) Project 3
• D) Either Project 1 or Project 2 because they have the same expected return

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Definitions:

Savings-Bond Portfolio

A collection of savings bonds held by an individual or entity, often used as a low-risk investment strategy.

Ontario Savings Bonds

Debt securities issued by the Province of Ontario, offering investors a fixed return over a specific period.

Canada Savings Bonds

A type of savings bond issued by the Government of Canada, offering a fixed interest rate over a certain period.

Reduction Of

A decrease in amount, size, intensity, or the number of something, often referring to cost, price, or rates.