Two Assets Have the Following Expected Returns and Standard Deviations

question 69

Multiple Choice

Two assets have the following expected returns and standard deviations when the risk-free rate is 5%: An investor with a risk aversion of A = 3 would find that _________________ on a risk return basis.

• A) only Asset A is acceptable
• B) only Asset B is acceptable
• C) neither Asset A nor Asset B is acceptable
• D) both Asset A and Asset B are acceptable