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Given the investment opportunities described in Table 1C, which of the following statements is true? Table 1C C Returns from Investments A and B State
Given the investment opportunities described in Table 1C, which of the following statements is true?
Table 1C C Returns from Investments A and B | |||
| State of Economy | ||
Bad | Normal | Good | |
A B | $950 $500 | $1,000 $1,000 | $1,050 $1,500 |
Group of answer choices
Investors concerned about risk will place a higher value on A
A will be viewed as being riskier than B by investors
As outcome is more variable than Bs
Investors will value A and B equally, as they have the same Anormal economy cash flows
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