If the expected return of stock A is 12% and that of stock B is 14% and both have the same variance, then investors would prefer stock B to stock A.

Name: If the expected return of stock A is 12% and that of stock B is 14% and both have the same variance, then investors would prefer stock B to stock A.
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Question

Quizplus · Accepted Answer

Investors would prefer stock B as it has a higher expected return. The fact that both stocks have the same variance is irrelevant to this comparison.

If the Expected Return of Stock a Is 12% and That