Thank you for the opportunity to help you with your question!
You should recognize that basing a decision solely on expected returns is appropriate only for risk-neutral individuals. Because your client, like virtually everyone, is risk averse, the riskiness of each alternative is an important aspect of the decision. One possible measure of risk is the standard deviation of returns.
Please let me know if you need any clarification. I'm always happy to answer your questions.
Sep 18th, 2015
Studypool's Notebank makes it easy to buy and sell old notes, study guides, reviews, etc.