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samualson samualson
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5 years ago
Investment A has an expected return of 15% per year, while Investment B has an expected return of 12% per year. A rational investor will choose
A) Investment A because of the higher expected return.
B) Investment B because a lower return means lower risk.
C) Investment A if A and B are of equal risk.
D) Investment A only if the standard deviation of returns for A is higher than the standard deviation of returns for B.
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Marc18Marc18
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#1
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5 years ago
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samualson Author
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#2
5 years ago
Makes more sense now, have a good weekend!
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