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Investment A has a standard deviation of 5% and an expected return of 15%. Investment B has a standard deviation of 10% and an expected
Investment A has a standard deviation of 5% and an expected return of 15%.
Investment A has a standard deviation of 5% and an expected return of 15%. Investment B has a standard deviation of 10% and an expected return of 20%. Investment C has a standard deviation of 10% and an expected return of 15%. Based on the coefficient of variation, which investment would a risk averse investor choose? a a. Investment C b. Any one of the three investments because they have the same coefficient of variation. Oc Investment A od Investment B Investment B has a standard deviation of 10% and an expected return of 20%.
Investment C has a standard deviation of 10 % and an expected return of 15%.
Based on the coefficient of variation, which investment would a risk averse investor choose?
a. Investment C
b. Any one of the three investments because they have the same coefficient of variation
c. Investment A
d. Investment B
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