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- Two assets, A and B, have the same expected return (10%) and the same level of risk (average). Which of the following statements is
- Two assets, A and B, have the same expected return (10%) and the same level of risk (average). Which of the following statements is true? of stion Select one: a. A combination of assets A and B will have the same expected return (10%) as either asset A or asset B, but may have less than average risk depending on how the cash flows from each asset move together. b. A combination of assets A and B will result in the same expected return (10%) as investing 100% in A or 100% in B, but the risk will increase because now two investments are at risk. c. A rational investor will either put 100% of her funds into asset A or 100% of her funds into asset B because the return will be the same but the investor will not have to track two separate investments. d. A rational investor is indifferent between investing 100% in A, 100% in B, or a combination of A and B, because the return and risk will be the same
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