Figure 5.1.2
-Refer to Figure 5.1.2 above. When Job 1 is compared to Job 2, we come to the following conclusion:
A) Job 1 has a lower expected return, but is less risky.
B) Job 1 has a higher expected return, but is more risky.
C) Job 1 has a higher expected return and is less risky than Job 2.
D) Job 1 has a lower expected return and is more risky than Job 2.

Question

Figure 5.1.2
-Refer to Figure 5.1.2 above. When Job 1 is compared to Job 2, we come to the following conclusion:
A) Job 1 has a lower expected return, but is less risky. 
B) Job 1 has a higher expected return, but is more risky. 
C) Job 1 has a higher expected return and is less risky than Job 2. 
D) Job 1 has a lower expected return and is more risky than Job 2.

Quizplus · Accepted Answer

When comparing Job 1 to Job 2, we can see that Job 1 has a higher expected return of 14% compared to Job 2's expected return of 12%. However, Job 1 also has a higher standard deviation of 9%, indicating that it is more risky compared to Job 2's standard deviation of 7%. Therefore, the best answer is B) Job 1 has a higher expected return, but is more risky.

Figure 5.1.2 -Refer to Figure 5.1.2 Above. When Job 1 Is Compared