Consider These Two Investment Strategies Strategy __________ Is the Dominant Strategy Because __________

Multiple Choice

Consider these two investment strategies: $$\begin{array} { l c r } & \text { Strategy } 1 ( \% ) & \text { Strategy 2(\%) } \\\text { Expected return } & 5 & 10 \\\text { Standard deviation } & 0 & 3 \\\text { Highest return } & 6 & 12 \\\text { Lowest return } & 5 & 6 \\\hline\end{array}$$ Strategy __________ is the dominant strategy because __________.

A) 1; it is riskless
B) 1; it has the highest reward/risk ratio
C) 2; its return is greater than or equal to the return of Strategy 1
D) 2; it has the highest reward/risk ratio
E) Both strategies are equally preferred.