Investments a and B Both Offer an Expected Rate of Return

question 45

Multiple Choice

Investments A and B both offer an expected rate of return of 12%. If the standard deviation of A is 20% and that of B is 30%, then investors would:

• A) Prefer A to B
• B) Prefer B to A
• C) Prefer a portfolio of A and B
• D) Cannot answer without knowing investor's risk preferences

Distinguish between different types of estates and interests in land.

Understand the legal frameworks governing copyright law and its exceptions.

Comprehend the specifics related to tangible and intangible property distinctions.

Recognize legal processes and protections related to patents and trademarks.

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Definitions:

Digital Cash

Money stored electronically in place of physical currency.

Physical Currency

Tangible money, such as coins and paper bills, used as a medium of exchange for goods and services.

Microchips

Small electronic components that contain integrated circuits used in various devices for computing and processing tasks.

Depositary Bank

A financial institution that holds and manages the deposits of securities for its clients and facilitates trading.