Solved

Consider These Two Investment Strategies Strategy ___ Is the Dominant Strategy Because _________

Question 57

Multiple Choice

Consider these two investment strategies:  Strategy 1 (%)  Strategy 2 (%)  Expected return 69 Standard deviation 04 Highest return 615 Lowest return 66\begin{array} { l c c } & \text { Strategy 1 } ( \% ) & \text { Strategy 2 } ( \% ) \\\hline \text { Expected return } & 6 & 9 \\\text { Standard deviation } & 0 & 4 \\\text { Highest return } & 6 & 15 \\\text { Lowest return } & 6 & 6\end{array}
Strategy ___ is the dominant strategy because _________.


A) 1,it is riskless
B) 1,it has the highest reward/risk ratio
C) 2,its return is at least equal to Strategy 1 and sometimes greater
D) 2,it has the highest reward/risk ratio
E) both strategies are equally preferred.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents