You are comparing share A to share B. Given the following information, which one of these two shares should you prefer and why?
A) Share A; because it has an expected return of 7% and appears to be more risky.
B) Share A; because it has a higher expected return and appears to be less risky than share B.
C) Share A; because it has a slightly lower expected return but appears to be significantly
Less risky than share B.
D) Share B; because it has a higher expected return and appears to be just slightly more risky
Than share A.
E) Share B; because it has a higher expected return and appears to be less risky than share A.
Correct Answer:
Verified
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