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Consider the information relating to the following three investments; A, B and C:
| Asset | Expected return (% p.a.) | Standard deviation of returns (% p.a.) |
| A | 12 | 15 |
| B | 8 | 15 |
| C | 14 | 25 |
Which of the following statements correctly describe the attitude of risk-averse investors when ranking these investments?
Group of answer choices
Risk-averse investors will always prefer Asset A to Asset C
More than one of the other statements are correct
Risk-averse investors will always prefer Asset A to Asset B
Risk-averse investors will always prefer Asset C to Asset A
Answer & Explanation
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