For each of the following pairs of investments, indicate which would always be preferred by a rational investor (assuming that these are the only investments available to the investor): a. Portfolio A r = 18% σ = 20% Portfolio B r = 14% σ = 20% Preference multiple choice 1 Portfolio A Portfolio B Indeterminate b. Portfolio C r = 21% σ = 22% Portfolio D r = 19% σ = 16% Preference: multiple choice 2 Portfolio C Portfolio D Indeterminate c. Portfolio E r = 10% σ = 16% Portfolio F r = 10% σ = 10% Preference: multiple choice 3 Portfolio E Portfolio F Indeterminate
For each of the following pairs of investments, indicate which would always be preferred by a rational investor (assuming that these are the only investments available to the investor): a. Portfolio A r = 18% σ = 20% Portfolio B r = 14% σ = 20% Preference multiple choice 1 Portfolio A Portfolio B Indeterminate b. Portfolio C r = 21% σ = 22% Portfolio D r = 19% σ = 16% Preference: multiple choice 2 Portfolio C Portfolio D Indeterminate c. Portfolio E r = 10% σ = 16% Portfolio F r = 10% σ = 10% Preference: multiple choice 3 Portfolio E Portfolio F Indeterminate
Chapter8: Analysis Of Risk And Return
Section: Chapter Questions
Problem 13QTD
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Question
For each of the following pairs of investments, indicate which would always be preferred by a rational investor (assuming that these are the only investments available to the investor):
a. | Portfolio A | r = 18% | σ = 20% |
Portfolio B | r = 14% | σ = 20% | |
Preference |
multiple choice 1
|
b. | Portfolio C | r = 21% | σ = 22% |
Portfolio D | r = 19% | σ = 16% | |
Preference: |
multiple choice 2
|
c. | Portfolio E | r = 10% | σ = 16% |
Portfolio F | r = 10% | σ = 10% | |
Preference: |
multiple choice 3
|
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