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Given a Choice Between Two Investments with the Same Expected

Question 46

Multiple Choice

Given a choice between two investments with the same expected payoff:


A) Most people will choose the one with the lower standard deviation
B) Most people will opt for the one with the higher standard deviation
C) Most people will be indifferent since the expected payoffs are the same
D) Most people will calculate the variance to assess the relative risks of the two choices

Correct Answer:

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