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7. You are comparing the returns of two portfolios for a 10-year period. Portfolio I has a lower dispersion of returns and a higher average
7. You are comparing the returns of two portfolios for a 10-year period. Portfolio I has a lower dispersion of returns and a higher average rate of return than Portfolio II. Given this, what do you know with certainty? A) Portfolio I has a lower standard deviation than Portfolio II. B) Portfolio I is riskier than Portfolio II. C) Portfolio II has less total risk than Portfolio I. D) Portfolio I will outperform Portfolio II over the next 10 years. E) Portfolio II consists of more individual stocks than Portfolio I.
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