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Asset A has two possible, equally likely, rate of return outcomes: 5 % or 1 5 % . Asset B also has two possible, equally
Asset A has two possible, equally likely, rate of return outcomes: or Asset B also has two possible, equally likely, rates of return: or
Asset A
Asset B
Which asset would a riskaverse investor would prefer?
Group of answer choices
A and B have unequal risk
B has higher risk
A and B have equal risk
A has higher risk
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