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Which of the following statements about the risk-return trade off is true? a. Portfolio A dominates portfolio B if porfolio A has a higher expected

Which of the following statements about the risk-return trade off is true?

a.

Portfolio A dominates portfolio B if porfolio A has a higher expected return than portfolio B.

b.

If an investor is risk netural, the investment attractiveness increases with expected return and decreases with risk.

c.

Portfolio A dominates portfolio B if porfolio A has a smaller variance than portfolio B.

d.

Sharpe ratio measures the risk premium for one unit of systematic risk.

e.

Assuming the return is normally distributed with a postive mean and variance, the probability of an investment loss is smaller in the long run.

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