Investments B and C Both Have the Same Standard Deviation

question 16

Multiple Choice

Investments B and C both have the same standard deviation of 20%. If the expected return on B is 15% and that of C is 18%, then the investors would

• A) Prefer B to C
• B) Prefer C to B
• C) Reject both B and C
• D) None of the above

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Definitions:

Bloody Mucus

A bodily secretion consisting of blood and mucus, often indicating inflammation or infection in the respiratory tract, digestive system, or other areas of the body.

Active Bacterial Infection

A state in which bacteria are rapidly multiplying and invading body tissues, often causing symptoms.

Nasal Cavities

The hollow spaces within the nose, involved in breathing and filtering air before it reaches the lungs.

Pharynx

Throat; opens to airways and digestive tract.