Suppose E[r_A] = 14 $\sigma$ _A = 17 $\sigma$ _B = 31

Multiple Choice

Suppose E[r_A] = 14.8%, $\sigma$ _A = 17.9%, E[r_B] = 17.1%, and $\sigma$ _B = 31.9%. Assuming a mean-variance framework, which of the following statements is true?

A) A is preferred to B.
B) B is preferred to A.
C) A and B are equally desirable.
D) Whether A or B is preferred depends on the correlation between the two assets.
E) Which asset is preferred depends on individual preferences.