A venture capital fund has €100 million to invest in climate…
A venture capital fund has €100 million to invest in climate technology. The fund is comparing two strategies: Strategy A: Invest all €100 million in one fusion energy startup. There is a 20% chance of earning €600 million and an 80% chance of losing everything. Strategy B: Invest €50 million in a solar company (50% chance of earning €150 million, 50% chance of €0) and €50 million in a wind company (50% chance of earning €200 million, 50% chance of €0). Which of the following statements is true?