Consider these two investment strategies: $$\begin{array} { l c r }
& \text { Strategy } 1 ( \% ) & \text { Strategy 2(\%) } \
\text { Expected return } & 5 & 10 \
\text { Standard deviation } & 0 & 3 \
\text { Highest return } & 6 & 12 \
\text { Lowest return } & 5 & 6 \
\hline
\end{array}$$ 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.

Question

Consider these two investment strategies: $$\begin{array} { l c r } 
& \text { Strategy } 1 ( \% ) & \text { Strategy 2(\%) } \
\text { Expected return } & 5 & 10 \
\text { Standard deviation } & 0 & 3 \
\text { Highest return } & 6 & 12 \
\text { Lowest return } & 5 & 6 \
\hline
\end{array}$$ 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.

Quizplus · Accepted Answer

The Answer of Consider these two investment strategies: $$\begin{array} { l c r } 
& \text { Strategy } 1 ( \% ) & \text { Strategy 2(\%) } \
\text { Expected return } & 5 & 10 \
\text { Standard deviation } & 0 & 3 \
\text { Highest return } & 6 & 12 \
\text { Lowest return } & 5 & 6 \
\hline
\end{array}$$ 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.

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

Consider These Two Investment Strategies Strategy Is the Dominant Strategy Because