Consider These Two Investment Strategies: Strategy __________ Is the Dominant

question 5

Multiple Choice

Consider these two investment strategies: Strategy __________ is the dominant strategy because __________.

• A)1; it is riskless
• B)1; it has the highest reward/risk ratio
• C)2; its return is greater than or equal to the return of Strategy 1
• D)2; it has the highest reward/risk ratio

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Definitions:

Bi-conditional

A logical relationship between two propositions where both are either true or false together.

Tautology

A redundant or unnecessary statement in which the conclusion is inherent in the premise, offering no new information.

Bi-conditional

A logical condition where two statements are both necessary and sufficient for one another; if and only if (iff).

Tautology

A redundant or repetitive statement in which the conclusion is equivalent to the premise, offering no additional insight.