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

Question 31

Multiple Choice

Consider these two investment strategies:  Strategy 1(%)   Strategy 2(%)   Expected return 69 Standard deviation 04 Highest return 615 Lowest return 66\begin{array} { l c c } & \text { Strategy 1(\%) } & \text { Strategy 2(\%) } \\\text { Expected return } & 6 & 9 \\\text { Standard deviation } & 0 & 4 \\\text { Highest return } & 6 & 15 \\\text { Lowest return } & 6 & 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.

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