As president and CEO of MegaWorld industries, you must decide on some very risky alternative investments:

The highest expected return belongs to investment

Question

As president and CEO of MegaWorld industries, you must decide on some very risky alternative investments:

The highest expected return belongs to investment

Quizplus · Accepted Answer

Based on the risk-return tradeoff, Investment B has the highest expected return with a moderate level of risk. Investments A, C, and D have lower expected returns with lower levels of risk, making them less attractive options for a company looking to take on risky alternative investments. Therefore, choosing Investment B would provide the company with the best chance of generating a high return while also managing risk.

As President and CEO of MegaWorld Industries, You Must Decide