Rogue Recreation,Inc

Multiple Choice

Rogue Recreation,Inc.has normally distributed returns with an expected return of 15% and a standard deviation of 5%,while Lake Tours,Inc.has normally distributed returns with an expected return of 15% and a standard deviation of 15%.Which of the following is true?

A) Lake Tours' investors are not being adequately compensated for relevant risk.
B) Rogue Rec is likely to experience returns larger than those of Lake Tours.
C) Lake Tours is more likely to have negative returns than Rogue Rec.
D) Rational investors will prefer Lake Tours, Inc. over Rogue Recreation, Inc.