013 Small company stocks have historically had higher average stocks, and also a higher risk premium A) True annual returns than large company B) False Q14 Investment A has return of 12% per year. A rational investor wilt choose A) B) an expected return of 15% per year, while Investment B has an expected Investment A because of the higher expected return. Investment B because a lower return mean s lower risk C) Investment A if A and B are of equal risk. r wwestiment A only if the standard deviation of returns for A is higher than the standard deviation of returns for B Q15 Beta is the statistical measure of A) Unsystematic risk B) Total risk C) The standard deviation D) The relationship between an investment's return and the market return sume that you expect to hold a $40,000 investment for one year, It is forecasted to have a year-end value of $42,000 with a 30% probability, a year end value of S48.000 with a 45% probability, and a year end value of S60.000 with a 25% probability, what is the expected holding period return for the investment? A) 50% B) 25% C) 23% D) 18% Q16 As tures hecause the claims of