1. What concept does the mean of a discrete random variable generalize? Comparing Investments. Suppose that the random variables X and Y represent the amount of return on two different investments....

1. What concept does the mean of a discrete random variable generalize?

Comparing Investments.Suppose that the random variablesXandYrepresent the amount of return on two different investments. Further suppose that the mean ofXequals the mean ofYbut that the standard deviation ofXis greater than the standard deviation ofY.

a. On average, is there a difference between the returns of the two investments? Explain your answer.

b. Which investment is more conservative? Why?