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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 Portfolio B r. 11% r = 7% 0 13% 0 13% Preference Portfolio A Portfolio B Indeterminate b. Portfolio C Portfolio D r = 12% r = 10% 0 = 13% 07% Portfolio C Preference: Portfolio D Indeterminate C. Portfolio E Portfolio F r15% r -15% 0 - 19% 0 = 13% Portfolio E Preference: Portfolio F O Indeterminate 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 Portfolio B r. 11% r = 7% 0 13% 0 13% Preference Portfolio A Portfolio B Indeterminate b. Portfolio C Portfolio D r = 12% r = 10% 0 = 13% 07% Portfolio C Preference: Portfolio D Indeterminate C. Portfolio E Portfolio F r15% r -15% 0 - 19% 0 = 13% Portfolio E Preference: Portfolio F O Indeterminate
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