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Andrew Carter and David Carter are interested in investing in battery and electric vehicle (EV) technology. Here is their conversation: AC: I will put all

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Andrew Carter and David Carter are interested in investing in battery and electric vehicle (EV) technology. Here is their conversation: AC: I will put all my money in Tesla. Period. DC: I think that's a dangerous idea. I'd put my money in a number of battery and EV companies, such as Tesla, BYD, Panasonic, Toyota and Volkswagen. AC: But that won't give you the highest expected return! DC: How do you expect investing only in Tesla to maximise your expected return? AC: Tesla has a very high volatility! Discuss whether AC's statement about Tesla's very high volatility maximising expected return is correct. (4 marks)

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