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Consider these two investment strategies: Strategy 1(%) Strategy 2(%) Expected return 5 10 Standard deviation 0 3 Highest return 6 12 Lowest return 5 6

Consider these two investment strategies: Strategy 1(%) Strategy 2(%) Expected return 5 10 Standard deviation 0 3 Highest return 6 12 Lowest return 5 6 Strategy __________ is the dominant strategy because __________. A. 1; it has the highest reward/risk ratio B. 2; its return is greater than or equal to the return of Strategy C. 2; it has the highest reward/risk ratio D. 1; it is riskless E. Both strategies are equally preferred.

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