Asset a Has an Expected Return of 15% and a Reward-To-Variability

question 12

Multiple Choice

Asset A has an expected return of 15% and a reward-to-variability ratio of .4.Asset B has an expected return of 20% and a reward-to-variability ratio of .3.A risk-averse investor would prefer a portfolio using the risk-free asset and ______.

• A) asset A
• B) asset B
• C) no risky asset
• D) can't tell from the data given

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Definitions:

Audience Objections

Concerns, disagreements, or questions raised by an audience or potential customers regarding a proposal, presentation, or product.

Persuasive Message

Communication intended to influence the attitudes, beliefs, or behaviors of the target audience.

Recommendation

An advice or proposal given by someone as a suggestion for what action should be taken.

Apology

An expression of regret or sorrow for one's actions, often with an intent to make amends or seek forgiveness.