Given Investments a and B with the Following Risk Return

question 17

Multiple Choice

Given investments A and B with the following risk return characteristics, which one would you prefer and why?

• A) Investment A because it has the highest expected return.
• B) Investment A because it has the lowest relative risk.
• C) Investment B because it has the lowest absolute risk.
• D) Investment B because it has the lowest coefficient of variation.
• E) Investment A because it has the highest coefficient of variation.

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