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QUESTION 8 The risk return profiles of four stocks are shown in the following table. Stock Expected Return w .09 .05 Y .15 Z .12

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QUESTION 8 The risk return profiles of four stocks are shown in the following table. Stock Expected Return w .09 .05 Y .15 Z .12 Standard Deviation 21 .07 36 .11 Assuming that someone wishes place all their investment dollars in one of these stocks, which of the following statements is true? O All rational Investors would view stock Y as the best option. O All rational Investors would view stock W as inferior compared to the others. O No rational investor would choose stock X over stock Z. O None of the above

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