Answer questions 3 to 4 based on the following information.Edwin faces two risks. They are car accident and plane crash, with the following loss amounts and probabilities of loss:Car accidentLoss amountProbability0.90$ 2.0000.07$ 20,0000.03Plane crashLoss amountProbability$00.9999$ 1,000,0000.0001What are the expected amount and standard deviation of loss for car accident?Select one:O a. Expected loss: $740 Standard deviation of loss: $3,425O b. Expected loss: $740 Standard deviation of loss: $9,999O. Expected loss: $2,000 Standard deviation of loss: $3,425O d. Expected loss: $2,000 Standard deviation of loss: $9,999Oe.None of the aboveWhich of the following statements is correct?Select one:O a. In terms of standard deviation of loss, plane crash is riskier than car accidentO b. In terms of standard deviation of loss, car accident is as risky as plane crashO . The expected loss of plane crash is higher than that of car accidentO d. The expected loss of car accident is equal to that of plane crashNone of the above

Answered: Answer questions 3 to 4 based on the…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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My question is about personal financial planning, I have the questions attached below for the hw set. thanks in advance.
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