Multiple Choice
Asset A has a coefficient of variation of 1.2 and asset B has a coefficient of variation of 1.0. Based on this information, an individual would choose asset ____ if he or she wishes to maximize return for a given level of risk.
A) A
B) B
C) A & B in equal proportions
D) A & B in proportions of 1.2 to 1.0
Correct Answer:
Verified
Correct Answer:
Verified
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