Selection of expected return by rational investor

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Reference no: EM1355654

Investment A has an expected return of 15% per year, while investment B has an expected return of 12% per year. A rational investor will choose:

A) investment A if A and B are of equal risk.
B) investment B because a lower return means lower risk.
C) investment A because of the higher expected return.
D) investment A only if the standard deviation of returns for A is higher than the standard deviation of returns for B.

Reference no: EM1355654

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