Which of the Following Pairs of Portfolios Exemplifies the Risk-Return

question 130

Multiple Choice

Which of the following pairs of portfolios exemplifies the risk-return tradeoff?

• A)For Portfolio A, the average return is 6 percent and the standard deviation is 15 percent; for Portfolio B, the average return is 6 percent and the standard deviation is 25 percent.
• B)For Portfolio A, the average return is 5 percent and the standard deviation is 15 percent; for Portfolio B, the average return is 8 percent and the standard deviation is 15 percent.
• C)For Portfolio A, the average return is 5 percent and the standard deviation is 25 percent; for Portfolio B, the average return is 8 percent and the standard deviation is 15 percent.
• D)For Portfolio A, the average return is 5 percent and the standard deviation is 15 percent; for Portfolio B, the average return is 8 percent and the standard deviation is 25 percent.

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Definitions:

Deindustrialization

The transformation of an economy from one based on manufacturing to one based on services.

Structural Variables

Components of social, economic, or political structures that can affect outcomes in research or the understanding of societal phenomena, including factors like class, race, and gender.

Social Inequality

Exists when certain attributes affect a person’s access to socially valued resources.

Individual Attributes

The characteristics or qualities that define a person, such as physical features, personality traits, and abilities.