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

question 24

Multiple Choice

Consider these two investment strategies: $$\begin{array} { | l | l | l | } \hline & \text { Strategy 1 } ( \% ) & \text { Strategy 2 } ( \% ) \\\hline \text { Expected return } & 5 & 10 \\\hline \text { Standard deviation } & 0 & 3 \\\hline \text { Highest return } & 6 & 12 \\\hline \text { Lowest return } & 5 & 6 \\\hline\end{array}$$ 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.

---

Definitions:

Loop Diuretic

A type of diuretic medication that works on the loop of Henle in the kidney to increase urine output, often used to treat conditions like hypertension and edema.

Congestive Heart Failure

A chronic condition where the heart does not pump blood as well as it should, leading to fluid build-up in the lungs and other parts of the body.

Micturition

The process of expelling urine from the bladder; also known as urination.

Indwelling Urinary Catheter

A tube inserted into the bladder through the urethra to drain urine for individuals who cannot urinate on their own.