If Two Assets Have the Same Expected Rate of Return

question 16

True/False

If two assets have the same expected rate of return but different variances, a risk-averse investor should always choose the one with the smaller variance, no matter what other assets she holds.

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Definitions:

Workplace Behavior

involves the actions and interactions of individuals within an organizational setting, affecting productivity, morale, and overall culture.

Gen Y Workers

Individuals born between the early 1980s and the mid-1990s, also known as Millennials, characterized by their familiarity with digital technology and different work expectations.

Gen Xers

Individuals born approximately between 1965 and 1980 who are characterized by their adaptability, tech-savviness, and independent work ethics.

Baby Boomers

A demographic group defined by people born during the post-World War II baby boom, approximately between 1946 and 1964.