Investment a Has an Expected Return of 14% with a Standard

question 147

Multiple Choice

Investment A has an expected return of 14% with a standard deviation of 4%,while investment B has an expected return of 20% with a standard deviation of 9%.Therefore,

• A) a risk averse investor will definitely select investment A because the standard deviation is lower.
• B) a rational investor will pick investment B because the return adjusted for risk (20% - 9%) is higher than the return adjusted for risk for investment A ($14% - 4%).
• C) it is irrational for a risk-averse investor to select investment B because its standard deviation is more than twice as big as investment A's, but the return is not twice as big.
• D) rational investors could pick either A or B, depending on their level of risk aversion.

Comprehend the divisions of the autonomic nervous system and their activation in response to environmental stimuli.

Describe the structure and function of synaptic knobs in neuron communication.

Understand the organization and role of spinal nerves in the motor system.

Identify and explain the significance of cerebrospinal fluid (CSF) and its protective functions for the central nervous system.

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Definitions:

Fear of Failure

An apprehension or anxiety about not meeting expectations or achieving a desired outcome, often inhibiting risk-taking or effort.

Professional Behavior

Conduct and manners deemed appropriate in a workplace setting, including ethics, respect, and effective communication.

Devil's Advocate

Someone who, for the sake of argument, adopts a position they do not necessarily agree with, in order to debate or explore the idea further.

Career Advice

Guidance or recommendations regarding professional development and strategies for career growth.