Based on the Information Given Below, Which of the Investments $\hat { r}$

question 9

Multiple Choice

Based on the information given below, which of the investments would be considered best based on its risk and return relationship? Assume all investors are risk-averse and the investments will be held in isolation, not in a portfolio. Investment
D E F Expected return, $\hat { r}$ 10.0% 18.0% 18.0% Standard deviation, ? 7.0% 12.0% 20.0%

• A)D, because its total risk is lowest.
• B)E, because its coefficient of variation is lowest.
• C)F, because its standard deviation, ?, is highest.
• D)E and F, because the have the same expected return, \(\hat { r}\) .
• E)None of the above.

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Definitions:

Boolean Value

A boolean value is a basic data type in programming that can only hold one of two possible values: true or false.

Integers Equality

The condition where two integer values are the same in value.

Method Overloading

The ability to define multiple methods within a class with the same name but different parameters.

Class

In programming, a blueprint from which objects are created, encompassing methods and attributes.