Most risk and return models in finance define risk in terms of variance or standard deviation of actual returns around an expected return. Assume that you were looking at the following investments,...

Most risk and return models in finance<br>define risk in terms of variance or<br>standard deviation of actual returns<br>around an expected return. Assume<br>that you were looking at the following<br>investments, Which of these<br>investments would you never take?<br>Select one:<br>a. Investment B: Expected Return<br>= 20%, Standard deviation = 25%<br>O b. Investment A: Expected Return<br>= 2%, Standard deviation = 0%<br>c. Investment C: Expected Return<br>= 10%, Standard deviation = 10%<br>d. Investment D: Expected Return<br>= 10%, Standard deviation = 15%<br>

Extracted text: Most risk and return models in finance define risk in terms of variance or standard deviation of actual returns around an expected return. Assume that you were looking at the following investments, Which of these investments would you never take? Select one: a. Investment B: Expected Return = 20%, Standard deviation = 25% O b. Investment A: Expected Return = 2%, Standard deviation = 0% c. Investment C: Expected Return = 10%, Standard deviation = 10% d. Investment D: Expected Return = 10%, Standard deviation = 15%

Jun 02, 2022

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Most risk and return models in finance define risk in terms of variance or standard deviation of actual returns around an expected return. Assume that you were looking at the following investments,...

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