Asset a Has an Expected Return of 15% and a Reward-To-Variability

question 12

Multiple Choice

Asset A has an expected return of 15% and a reward-to-variability ratio of .4.Asset B has an expected return of 20% and a reward-to-variability ratio of .3.A risk-averse investor would prefer a portfolio using the risk-free asset and ______.

• A) asset A
• B) asset B
• C) no risky asset
• D) can't tell from the data given

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Definitions:

Attribute Success

The tendency to explain one's achievements based on personal qualities and effort.

Attribution Process

The cognitive process individuals use to explain the causes of behavior and events, including the interpretation of one's own behavior and the behavior of others.

Common Errors

Frequent mistakes or misconceptions that occur in a specific context or activity.

Registration Document

A document that officially records the details of an entity, vehicle, or property, facilitating its official recognition.