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-Given No Other Information Other Than the Expected Returns and }

question 23

Multiple Choice

 Asset  Expected return (E(R) )  Standard deviation  (ธ)  A10%9%B12%8%C15%12%D13%11%\begin{array}{|l|c|c|}\hline \text { Asset } & \begin{array}{c}\text { Expected return } \\(\mathrm{E}(\mathrm{R}) \boldsymbol{) }\end{array} & \begin{array}{c}\text { Standard deviation } \\\text { (ธ) }\end{array} \\\hline \mathrm{A} & 10 \% & 9 \% \\\hline \mathrm{B} & 12 \% & 8 \% \\\hline \mathrm{C} & 15 \% & 12 \% \\\hline \mathrm{D} & 13 \% & 11 \% \\\hline\end{array}
-Given no other information other than the expected returns and risk,which asset would a risk-averse investor prefer?


Definitions:

Egocentrism

The inability to differentiate between one's own perspective and someone else's perspective, often observed in early childhood development.

Imaginary Audience

The aspect of adolescent egocentrism that involves attention-getting behavior motivated by a desire to be noticed, visible, and “onstage.”

Zone of Proximal Development

Vygotsky's concept indicating the difference between what a learner can do without help and what they can do with help or guidance.

Pretend Play

A form of play in which children use their imagination to create scenarios, roles, and activities, essential for cognitive and social development.

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