Question

If an investor wants to hold an efficient portfolio that offers an expected return of 12%, should the investor select portfolio A that exhibits a standard deviation of 4% or portfolio C that has a standard deviation of 2%?

A) The rational investor will be indifferent about the portfolio selectionB) The investor should select portfolio CC) the investor should select portfolio AWhich choice from the above is correct?

Answer 1

Answer: B) The investor should select portfolio C

Step-by-step explanation: