Which of the Following Portfolios Is Clearly Preferred to the Others

question 44

Multiple Choice

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

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

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Definitions:

Function

A relationship or expression involving one or more variables, where each input value has exactly one output value.

Simplify

To reduce a mathematical expression or equation to its simplest form by performing operations and combining like terms.

Evaluate

To calculate the numerical value of an expression or determine the result of an equation.

Function

A function is a relation between a set of inputs and a set of permissible outputs with the property that each input is related to exactly one output.