Two Assets Have the Following Expected Returns and Standard Deviations

question 10

Multiple Choice

Two assets have the following expected returns and standard deviations when the risk-free rate is 5%: An investor with a risk aversion of A = 3 would find that ________ on a risk-return basis.

• A)only Asset A is acceptable
• B)only Asset B is acceptable
• C)neither Asset A nor Asset B is acceptable
• D)both Asset A and Asset B are acceptable

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Definitions:

Gene Duplication

A process in which a segment of genetic material or a whole gene is copied or duplicated, leading to multiple copies of that segment or gene in the genome.

Paralogs

Genes that arise by duplication within the same organism, often developing new functions while retaining some characteristics of the original gene.

Functional Redundancy

The phenomenon where multiple species or genes perform similar functions within an ecosystem or biological system, providing resilience against environmental changes or perturbations.

Engrailed Gene

A gene that plays a crucial role in defining the segments and patterning of the body parts in many organisms, including their limb development.