Yaw Onipa, a businessman wishes to invest in two different products, Mfund and Epack. For any amount invested in in four

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Yaw Onipa A Businessman Wishes To Invest In Two Different Products Mfund And Epack For Any Amount Invested In In Four 1 (60.09 KiB) Viewed 77 times

Yaw Onipa, a businessman wishes to invest in two different products, Mfund and Epack. For any amount invested in in four different months, there is an estimated probability of achieving the expected returns in month is also determined. The following table shows the probability distribution where P(A, B) represents the probability of occurrence of the ith outcome of A and the ith outcome of B. 2 Mfund (A) Epack (B) P(A, B) 3 6 0.2 5 3 4 1 2 0.15 0.3 0.35 i. ii. iii. Which of the investments has a better return and why? Which of the investments is relatively less risky and why? Calculate the covariance between the two investment types and interpret your results.