If Two Assets Have the Same Expected Rate of Return

question 16

True/False

If two assets have the same expected rate of return but different variances, a risk-averse investor should always choose the one with the smaller variance, no matter what other assets she holds.

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Definitions:

Counselling

Professional guidance provided to individuals to help them manage personal or psychological challenges, often available within organizational settings for employee welfare.

Mentorship

A professional relationship where a more experienced individual guides and supports the development of a less experienced person.

Talent Management

encompasses the strategic efforts of identifying, recruiting, developing, and retaining individuals to meet current and future organizational needs.

Vacancy Risk

The potential negative impact on an organization due to key positions being unfilled or having high turnover, affecting the business's operation and performance.