There are three investment plans for your consideration


Question: There are three investment plans for your consideration. Each plan calls for an investment of $25,000 and the return will be one year later. Plan A will return $27,500. Plan B will return $27,000 or $28,000 with probabilities 0.4 and 0.6, respectively. Plan C will return $24,000, $27,000, or $33,000 with probabilities 0.2, 0.5, and 0.3, respectively. If your objective is to maximize the expected return, which plan should you choose? Are there considerations that might be relevant other than simply the expected values?

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Engineering Mathematics: There are three investment plans for your consideration
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