Based on your calculations, which one of the two investments is the riskiest? Which one of the two investments will provide the highest return?

1.1 Calculate the mean of the capital return probability distribution for Building A.

1.2 Calculate the mean of the capital return probability distribution for Building B.

1.3 Using the mean calculated in Question 1.1, calculate Building A’s standard deviation.

1.4 Using the mean calculated in Question 1.2, calculate Building B’s standard deviation.

1.5 Calculate the expected ex ante total return and ex ante risk premium for Building A.

1.6 Calculate the expected ex ante total return and ex ante risk premium for Building B.

1.7 Based on your calculations, which one of the two investments is the riskiest? Which one of the two investments will provide the highest return? What does this illustrate about the relationship between risk and return? (Max. 70 words)