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Questa Bank is intending to invest in two different investments with the following net cash
flows. Investment I Investment II Possible NCF Probability Possible NCF Probability (KES)
(KES) 3600 20% 2400 20% 4400 60% 3400 60% 4700 20% 4400 20% Evaluate the risk of the
two investments and advise the management on the course of action to take

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