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...


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 = 14%
σ = 16%
Portfolio B
r = 10%
σ = 16%


Preference




multiple choice 1





  • Portfolio A





  • Portfolio B





  • Indeterminate




























b.
Portfolio C
r= 15%
σ = 16%
Portfolio D
r= 13%
σ= 10%


Preference:




multiple choice 2





  • Portfolio C





  • Portfolio D





  • Indeterminate




























c.
Portfolio E
r = 12%
σ = 16%
Portfolio F
r = 12%
σ = 10%


Preference:




multiple choice 3





  • Portfolio E





  • Portfolio F





  • Indeterminate







Jun 07, 2022
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