BARNETT CORPORATION

Barnett Corporation



Barnett Corporation

a) If Sharon were risk-indifferent, which investments would she select? Explain why.

Investment Expected Return Expected Risk Index

X 14% 7%

Y 12% 8%

Z 10% 9%

Sharon will commit in Investment X, as she is insensitive to risk. It signifies who is wholly indifferent to the risk inhabited by in an financial endeavour and is only anxious about looked frontwards to return. Since, Investment X renders the utmost revisit, dismissing Risk Index.

b) If she were risk-averse, which investments would she select? Why?

If she was risk averse, she would have speculated in financial endeavour X since it is ...