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.	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