All 3 Please! or pick your favorite.

1. As a risk averse investor, which of the following four otherwise identical investments would you prefer? Security A, which is offering an expected average return of 10% and a standard deviation of 1%. Security C, which is offering an expected return of 5% and a standard deviation of 3%. Security B, which is offering an expected return of 10% and a standard deviation of 3%. Security D, which is offering an expected return of 5% and a standard deviation of 1%. 2. In general, it is reasonable to expect that holding a portfolio consisting of both international and domestic assets, rather than domestic stocks alone, will provide greater risk-reduction benefits due to which of the following factors? The differing economic, regulatory, and political systems expose domestic and international securities to different, and potentially offsetting, sources and amounts of diversifiable and market risks. This can cause the securities to generate independent or offsetting patterns of returns. The differing economic, regulatory, and political systems expose domestic and international securities to different, and potentially offsetting, sources and amounts of market risks. While the domestic and foreign companies share common sources of diversifiable risk, the differences in market risk can still cause their patterns of returns to differ sufficiently to offer small risk-reduction benefits. 3. Two securities, A and B, are expected to be worth $100.00 in one year. Because A is riskier than B, the current price of A should be the current price of B. iffering economic, regulatory, and political systems expose domestic and international securities to different, and potentia ting, sources and amounts of market risks. While the domestic and foreign companies share common sources of diversifia ifferences in market risk can still cause their patterns of returns to differ sufficiently to offer small risk-reduction benefits. s, A and B, are expected to be worth $100.00 in one year. Because A is riskier than B, the current price of A should be the current price of B