Question

Took multiple pictures because it was so blurry. There are 4 parts.

Part (a): Which of the funds would be considered the riskier option? Why?

Answer 1

The riskier option among the funds is the first investment.

Step-by-step explanation:

When considering the riskier option among funds, it is important to analyze the risk involved in each option. In this case, we are given three investment amounts: $200,000; $600,000; and $400,000. The lowest probability of loss is associated with the third investment, making it the safest option. On the other hand, the first investment has the highest probability of loss, making it the riskiest option. Therefore, the riskier option among the funds would be the first investment.