Chapter 9.3, Problem 57E

To determine

To calculate: The higher expected rate of returns out of two funds Fast Forward Funds and Solid-state Securities if the probability distributions of the rate of return for two funds for next year is recorded in the table by the Stock Analysts:

Fast Forward Funds

Rate of Return	$-0.4$	$-0.3$	$-0.2$	$-0.1$	$0$	$0.1$	$0.2$	$0.3$	$0.4$
Probability	$\text{0}\text{.015}$	$\text{0}\text{.025}$	$\text{0}\text{.043}$	$\text{0}\text{.132}$	$\text{0}\text{.289}$	$\text{0}\text{.323}$	$0.111$	$0.043$	$0.019$

Solid State Securities

Rate of Return	$-0.4$	$-0.3$	$-0.2$	$-0.1$	$0$	$0.1$	$0.2$	$0.3$	$0.4$
Probability	$\text{0}\text{.012}$	$\text{0}\text{.023}$	$\text{0}\text{.050}$	$\text{0}\text{.131}$	$\text{0}\text{.207}$	$\text{0}\text{.330}$	$0.188$	$0.043$	$0.016$