13)

Stock A B C D

Expected Return 4% 6% 8% 5%

Standard Deviation 8% 6% 4% 10%

For a rational risk-averse investor, which of the following can we definitely say is

CORRECT?

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Part 1

A.

C is a better investment than B.

B.

D is a better investment than C

C.

A is a better investment than B

D.

D is a better investment than A