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:

Root System

The underground portion of a plant that anchors it in the soil and absorbs water and dissolved minerals. Compare with shoot system.

Dissolved Nutrients

Nutrients that are in a dissolved state in water and are readily available for uptake by plants and microorganisms.

Atmospheric Carbon Dioxide

A naturally occurring greenhouse gas in Earth's atmosphere, responsible for absorbing and emitting infrared radiation, significantly impacting the planet's climate.

Ground Tissue System

A plant tissue system composed of all tissues except the dermal tissue and vascular tissue, involved in photosynthesis, storage, and support.