If Two Investments, X and Y, Have the Same Expected

question 39

Multiple Choice

If two investments, X and Y, have the same expected return an individual investor would prefer:

• A)the one with a higher standard deviation.
• B)the one with a higher mean.
• C)the one with a lower correlation coefficient.
• D)the one with a lower variance.

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Definitions:

Receptor Eye

Specialized cells located in the eye that convert light into neurotransmitters to produce visual images. This term is not exactly standard, and a more accurate phrase might be "photoreceptor cells in the eye."

Rod

A type of photoreceptor cell in the retina that is highly sensitive to light, enabling vision in low-light conditions.

Young-Helmholtz Theory

A theory of color vision proposing that the eye contains three types of receptors sensitive to red, green, and blue light.

Color-Sensitive Cones

Photoreceptor cells in the retina of the eye that are responsible for color vision.