An individual faces two alternatives for an investment: Asset A has the following probability return schedule: Probability of return Return (yield) % 0.20 10 0.30 8 0.10 - 4 0.40 - 1 Asset B with a certain return of 2.0%. Calculate the expected return on Asset A.Would a risk averse investor ever choose investment A over investment B? Why or why not? [Hint: You need to calculate and compare expected values to successfully answer this question!]

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