Two assets have the following expected returns and standard deviations when the risk-free rate is 5%: An investor with a risk aversion of A = 3 would find that ________ on a risk-return basis.
A)only Asset A is acceptable
B)only Asset B is acceptable
C)neither Asset A nor Asset B is acceptable
D)both Asset A and Asset B are acceptable

Question

Two assets have the following expected returns and standard deviations when the risk-free rate is 5%:  An investor with a risk aversion of A = 3 would find that ________ on a risk-return basis.
A)only Asset A is acceptable 
B)only Asset B is acceptable 
C)neither Asset A nor Asset B is acceptable 
D)both Asset A and Asset B are acceptable

Quizplus · Accepted Answer

The Answer of Two assets have the following expected returns and standard deviations when the risk-free rate is 5%:  An investor with a risk aversion of A = 3 would find that ________ on a risk-return basis.
A)only Asset A is acceptable 
B)only Asset B is acceptable 
C)neither Asset A nor Asset B is acceptable 
D)both Asset A and Asset B are acceptable

Two Assets Have the Following Expected Returns and Standard Deviations