Which of the Following Portfolios Is Clearly Preferred to the Others

question 50

Multiple Choice

Which of the following portfolios is clearly preferred to the others? Expected Standard
Return Deviation
A 14% 12%
B 22% 20%
C 18% 16%

• A) Investment A
• B) Investment B
• C) Investment C
• D) Cannot be determined

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Definitions:

Human Immunodeficiency Virus

A virus that attacks the immune system and can lead to acquired immunodeficiency syndrome (AIDS), a condition in which progressive failure of the immune system allows life-threatening opportunistic infections and cancers to thrive.

Malignant Tumours

Cancerous growths that have the ability to invade nearby tissues and spread to other parts of the body.

Blood

A vital liquid in humans and animals that delivers necessary substances such as nutrients and oxygen to the cells and transports metabolic waste products away.

Volatility

A statistical measure of the dispersion of returns for a given security or market index, often used to quantify the risk of the security or market.