Question
h) Investments B and C both have the same standard deviation of 20% and have the same correlation to the market portfolio. If the expected
h) Investments B and C both have the same standard deviation of 20% and have the same correlation to the market portfolio. If the expected return on B is 15% and the expected return on C is 18% the investors would:
A. Prefer B to C.
B. Prefer C to B.
C. Reject both B and C.
D. Cannot answer without knowing investor's risk preferences.
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Analysis Of Financial Data
Authors: Gary Koop
1st Edition
0470013214, 978-0470013212
