You Are Evaluating Two Investments,A and B

question 64

Multiple Choice

You are evaluating two investments,A and B.Data appear below: AB Expected return 10% 12% Highest possible return 20% 14% Lowest possible return 0% - 4% The riskier investment is

• A)A,because it has a lower expected return.
• B)A,because it has a wider range of returns.
• C)B,because it has a possible loss.
• D)B,because its possible highest return is less than A.

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Definitions:

Heroin

An opioid drug derived from morphine, highly addictive and illegal, commonly associated with serious public health issues.

Morphine

An opioid medication derived from the opium poppy, used primarily to relieve severe pain by directly acting on the central nervous system.

Peyote Plant

The Peyote Plant is a small, spineless cactus with psychoactive alkaloids, most notably mescaline, used primarily in Native American ritual contexts.

Methadone

A synthetic opioid used primarily for drug addiction detoxification and maintenance therapy, especially in heroin addiction.