You have $500,000 in your retirement fund and are planning on your retirement lasting 25...
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You have $500,000 in your retirement fund and are planning on your retirement lasting 25 years. If he can earn 5%, how much can you take from your fund annually over 25 years?
You have two projects and need to determine which is preferred. Expected returns for both is 15%. The first project has a standard deviation of 2.5, the other has a variance of 9. A risk-averse investor would choose:
O Project "B" because the variance for project "A" is unkown Project "A" because it has a lower standard deviation than project "B" but the same expected return Project "A" because the standard deviation of project "B" is unknown O Project "B" because it has a lower variance than project "A
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