Statistics
Respond with the word RED to show you have read and understood the assignment. Due within hours.The option that offers the greatest expected return is the best investmentExpected return for stock marketExpected return= = (0.15 25%) + (0.35 20%)+ (0.25 5%) + (0.25 -14%) = 8.5%Expected return for goldExpected return= = (0.15 -30%) + (0.35 -9%)+ (0.25 5%) + (0.25 50%) = 13.6%DecisionSince the expected return for gold is higher than for the stock market, it is better to invest in gold.****You base your answer on the amount of expected return. What if you calculated the risk involved with each? Would you choose the same? Calculate the risk for each and show your work.******