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    Principles of Corporate Finance Study Set 5
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    Exam 8: Portfolio Theory and the Capital Asset Pricing Model
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    Investments B and C Both Have the Same Standard Deviation
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Investments B and C Both Have the Same Standard Deviation

Question 16

Question 16

Multiple Choice

Investments B and C both have the same standard deviation of 20%. If the expected return on B is 15% and that of C is 18%, then the investors would


A) Prefer B to C
B) Prefer C to B
C) Reject both B and C
D) None of the above

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