Joe,a Risk-Averse Investor,is Trying to Choose Between Investment a and Investment

question 141

Multiple Choice

Joe,a risk-averse investor,is trying to choose between investment A and investment B.If investment A is riskier than investment B and Joe selects investment A anyway,then

• A) the actual return for investment A will be higher than the actual return for investment B.
• B) the actual return for investment A will be higher than the expected return for investment B.
• C) the expected return for investment A will be higher than the actual return for investment B.
• D) the expected return for investment A will be higher than the expected return for investment B.