Assume that the expected returns of the four portfolios are the same but their variances are as follows.Which of these four portfolios is the most risky?

Question

Quizplus · Accepted Answer

Portfolio C has the highest variance among the four, indicating that it has the highest level of risk. The other portfolios have lower variances and therefore are less risky. The expected returns are the same for all portfolios, so the decision should be based on risk.

Assume That the Expected Returns of the Four Portfolios Are