Unformatted text preview: xis).
A. up, right
B. up, left
C. down, right
D. down, left
2. Asset A has an expected return of 15% and a reward-to-variability ratio of .4. Asset B
has an expected return of 20% and a reward-to-variability ratio of .3. A risk-averse
investor would prefer a portfolio using the risk-free asset and ______.
A. asset A
B. asset B
C. no risky asset
D. can't tell from the data given
3. An investor's degree of risk aversion will determine his or her ______.
A. optimal risky portfolio
B. risk-free rate
C. optimal mix of the risk-free asset and risky ass...
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- Spring '13
- Standard Deviation