K Joe, a risk - averse investor, is trying to choose between investment A and investment B. If investment A is riskier than investment B and Joe selects investment A anyway, then OA. the expected return for investment A will be higher than the actual return for investment B. OB. the actual return for investment A will be higher than the actual return for investment B. OC. the actual return for investment A will be higher than the expected return for investment B. D. the expected return for investment A will be higher than the expected return for investment B.

Joe, a risk - averse investor, is trying to choose between investment A and investment B. If investment A is riskier than investment B and Joe selects investment A anyway, then A. the expected retum for investment A wall be higher than the actual return for investment B B. the actual retum for investment A wil be higher than the actual retum for investment B. C. The actual rotum for investment A wi be higher than the expected return for investment B D. the expected return for investment A wil be higher than the expocted return for investment B What is the net present value's assumption about how cash flows are reinvested? A. They are reinvested only at the end of the project. B. They are reinvested at the APR. C. They are reinvested at the IRR. D. They are reinvested at the firm's discount rate