You are considering an investment in one of two securities, A or B, which have the following distributions of outcomes. Determine the requested items and describe which security you will purchase and why you make that choice.
Prob RA RB (RA-mA)2 (RB-mB)2
10% 3% 4%
20% 5% 8%
50% 9% 11%
20% 11% 18%