Multiple Choice
Portfolio A has an expected return of 16% with a standard deviation of 8%. Portfolio B has an expected return of 12% with a standard deviation of 7%.
A) Portfolio A has a lower risk/return.
B) Portfolio B has a larger expected terminal wealth.
C) The portfolios have the same risk/return.
D) Portfolio B has a more certain return.
Correct Answer:
Verified
Correct Answer:
Verified
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