Consider These Two Investment Strategies Strategy __________ Is the Dominant Strategy Because __________

question 45

Multiple Choice

Consider these two investment strategies: $\begin{array}{cc}& \text { Strategy1\%} &\text { Strategy2\%} \\ \text { Expected return } &6&9\\ \text { Standard deviation } &0&4\\ \text {Highest return } &6&15\\ \text { Lowest return } &6&6\\\end{array}$

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
• E) Both strategies are equally preferred.

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Definitions:

Capitalist

An economic system where private individuals own and control property and businesses, operating them for profit.

Competitive Advantage

A condition or circumstance that puts a company in a favorable or superior business position compared to its competitors.

Sustainable Innovation

The creation of new products, processes, or technologies that meet current needs without compromising the ability of future generations to meet their own needs.

Use of Plastic

The utilization of synthetic or semi-synthetic organic compounds that are malleable and can be molded into solid objects for various uses.