Discuss which investment is safer and which one riskier, and why.State the expected accumulated value and variance for each investment.

Coursework 2 Exercise CW2.1 Consider the following two 4-year investments, with same initial investment given in the spread- sheet: Investment A: In each year, the annual effective rate of return is a discrete random variable. The rates in each year are independent and identically distributed, and their probability distribution given in the spreadsheet. Investment B: […]

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