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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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