According to the Mean-Variance Criterion, Which One of the Following

question 64

Multiple Choice

According to the mean-variance criterion, which one of the following investments dominates all others?

• A) E(r) = 0.15; Variance = 0.20
• B) E(r) = 0.10; Variance = 0.20
• C) E(r) = 0.10; Variance = 0.25
• D) E(r) = 0.15; Variance = 0.25
• E) None of these options dominates the other alternatives.

---

Definitions:

Population

The total number of individuals inhabiting a specific area or country.

Consumption

The use of goods and services by households. It is the largest component of aggregate demand in an economy.

Underground Economy

Economic activities that occur outside of government regulation and taxation, including both illegal activities and unreported income from legal work.

Intermediate Goods

Products used in the production process to make other goods, not including raw materials.