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For each of the following pairs of investments, indicate which would always be preferred by a rational investor (assuming that these are the only investments
For each of the following pairs of investments, indicate which would always be preferred by a rational investor (assuming that these are the only investments available to the investor):
a. | Portfolio A | r = 15% | = 17% |
Portfolio B | r = 11% | = 17% | |
Preference |
multiple choice 1 Portfolio A Portfolio B Indeterminate
|
b. | Portfolio C | r = 16% | = 17% |
Portfolio D | r = 14% | = 11% | |
Preference: |
multiple choice 2 Portfolio C Portfolio D Indeterminate
|
c. | Portfolio E | r = 11% | = 15% |
Portfolio F | r = 11% | = 9% | |
Preference: |
multiple choice 3 Portfolio E Portfolio F Indeterminate |
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