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Investments A, B, and C all have the following characteristics: A B C Expected Return 10% 10% 10% Standard Deviation 8% 8% 8% Skewness 1.5

Investments A, B, and C all have the following characteristics:

A B C
Expected Return 10% 10% 10%
Standard Deviation 8% 8% 8%
Skewness 1.5 0.4 -0.8
Excess Kurtosis -0.6 0 1.2

For an investor who is most concerned about not losing principal, the best investment and the worst investment are likely to be, respectively:

A.) A the best and B the worst

B.) B the best and A the worst

C.) B the best and C the worst

D.) A the best and C the worst

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