Consider These Two Investment Strategies Strategy __________ Is the Dominant Strategy Because __________

question 33

Multiple Choice

Consider these two investment strategies: $$\begin{array} { | l | l | l | } \hline & \text { Strategy 1 } ( \% ) & \text { Strategy 2 } ( \% ) \\\hline \text { Expected return } & 6 & 9 \\\hline \text { Standard deviation } & 0 & 4 \\\hline \text { Highest return } & 6 & 15 \\\hline \text { Lowest return } & 6 & 6 \\\hline\end{array}$$ Strategy __________ is the dominant strategy because __________.

• A)1, it is riskless
• B)1, it has the highest reward/risk ratio
• C)2, its return is at least equal to Strategy 1 and sometimes greater
• D)2, it has the highest reward/risk ratio
• E)both strategies are equally preferred.

Recognize the advantages and disadvantages of different forms of business ownership.

Identify the roles and responsibilities within the corporate organizational structure.

Comprehend the concept and implications of corporate governance.

Understand the taxation of corporations and double taxation.

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Definitions:

Biological Psychology

A branch of psychology that studies the physiological bases of behavior in humans and animals.

Evolutionary Psychology

A theoretical approach in the social and natural sciences that examines psychological structure from a modern evolutionary perspective.

Functionalism

A theory in psychology that considers mental life and behavior in terms of active adaptation to the person's environment.

Venting Anger

The act of expressing or releasing feelings of anger in various ways, which can be constructive or destructive.