Which of the following portfolios is clearly preferred to the others? Expected Standard
Return Deviation
A 14% 12%
B 22% 20%
C 18% 16%
A) Investment A
B) Investment B
C) Investment C
D) Cannot be determined

Question

Quizplus · Accepted Answer

The preference for a portfolio depends on the investor's risk tolerance and investment objectives. Without knowing the investor's risk preference, it's impossible to determine which portfolio is clearly preferred. Each portfolio has a different risk-return profile.

Which of the Following Portfolios Is Clearly Preferred to the Others