Consider these two investment strategies:

Consider these two investment strategies:

Strategy 1(%)Strategy 2(%)

Expected return510

Standard deviation03

Highest return612

Lowest return56

Strategy __________ is the dominant strategy because __________.

A.2; its return is greater than or equal to the return of Strategy 1

B.1; it has the highest reward/risk ratio

C.1; it is riskless

D.Both strategies are equally preferred.

E.2; it has the highest reward/risk ratio