You Are Considering the Risk-Return Profile of Two Mutual Funds

question 117

Short Answer

You are considering the risk-return profile of two mutual funds for investment. The relatively risky fund promises an expected return of 9%, with a standard deviation of 12%. The relatively less risky fund promises an expected return and standard deviation of 5% and 8%, respectively.
A) Which mutual fund will you pick if your objective is to minimize the probability of earning a negative return?
B) Which mutual fund will you pick if your objective is to maximize the probability of earning a return of between 8% and 12%?

• A) Which mutual fund will you pick if your objective is to minimize the probability of earning a negative return?
• B) Which mutual fund will you pick if your objective is to maximize the probability of earning a return of between 8% and 12%?

Understand the impact of international trade on domestic market prices and equilibrium.

Identify and differentiate between import demand and export supply curves.

Analyze how world prices influence domestic exports and imports.

Recognize and categorize different forms of trade barriers and their implications.

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