iPad 16:05 62 Jonkoping University Tid kvar (senaste tidpunkt for inlamning): 19 dygn Sparades: 16:04:51 Spara Task Listed below is information about two stocks Expected Return Variance standard deviation Stock A 54% 0013 20,74% 31.78% Which of the statements below characterizes the difference between the two stocks and best an swers the question: which stock would you prefer to hold? A. Stock A has less risk and has a higher expected retum: therefore, l prefer B. Stock B has a higher expected return but is riskier lt is impossible to say which stock would prefer depends on risk preferences and what other stocks lam holding. Stock B is less risky and has a higher return; therefore, Iprefer to hold it. D. There is no way to compare the two stocks. Another questions: What is an efficient portfolio? A. An efficient portfolio is any portfolio that only contains systematic risk-it contains no diversifiable nsk. B. An efficient portfolio is a portfolio that has the highest retum in the economy C. An efficient portfolio is a portfolio that minimizes the cost to the investor of purchasing if D. An efficient portfolio is a portfolio that simultaneously has the hightest return and the lowest volatilty. Answer: Maxpoang: 10