An investor is considering two investments, an office building and bonds. The possible returns from each investment and their probabilities are as follows: Office Building Bonds Return Probability Return Probability 30 .60 $30,000 40,000 20 $50,000 60,000 80,000 10,000 .40 1.00 .10 .30 .10 1.00 Using expected value and standard deviation as a basis for comparison, discuss which of the two investments should be selected.
