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:

Government Size

The extent or scale of government operations and interventions in a country's economy and society.

Government Functions

The roles and activities undertaken by the government to govern a country, including legislation, law enforcement, and public services like education and healthcare.

United States

A federal republic consisting of 50 states, a federal district, and various territories, located primarily in North America.

Deadweight Losses

Losses in social surplus that occur when a market is not operating efficiently, often due to disruptions like taxes, subsidies, or monopolies.