Investment A has an expected return of 15% per year, while Investment B has an...
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Investment A has an expected return of 15% per year, while Investment B has an expected return of 12% per year. A rational investor will choose Investment A because of the higher expected return. Investment B because a lower return means lower risk. Investment Aif A and B are of equal risk. Investment A only if the standard deviation of retums for A is higher than the standard deviation of returns for B. QUESTION 17 of the following different types of securities, which is typically considered most risky? O long-term corporate bonds long-term government bonds common stocks of large companics common stocks of small companies QUESTION 18 A stock's beta is a measure of its O unsystematic risk. systematic risk company-unique risk diversifiable risk
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