Mutual fund investing. An investor is considering how to invest her money. She has a choice between two mutual funds: a fund that invests in biotechnological firms and a fund that invests in infrastructure. The payoff (profit) after one year for these investments depends on the state of the economy
a) Compute the EV for each alternative decision.
b) Compute the SD for each decision.
c) Compute the CV and RRR for each decision.
d) Which mutual fund would you invest in and why?