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Other Fields Homework Help Finance Topic started by: Blittle5 on Mar 21, 2022



Title: Investment A has an expected return of 8% with a standard deviation of 12%. Investment B has an ...
Post by: Blittle5 on Mar 21, 2022
Investment A has an expected return of 8% with a standard deviation of 12%.  Investment B has an expected return of of 10% with a standard deviation 15%.

▸ Investment A should be preferred because of its lower risk.

▸ Investment B should be preferred because of its higher rate of return.

▸ Preference for A or B would depend on the investor's risk tolerance.

▸ Neither investment is acceptable because their standard deviations are greater than their expected rates of return.


Title: Investment A has an expected return of 8% with a standard deviation of 12%. Investment B has an ...
Post by: davisdiamond on Mar 21, 2022
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