Asset A has an expected return of 30% and a reward-to-variability ratio of 0.4. Asset...

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Accounting

  1. Asset A has an expected return of 30% and a reward-to-variability ratio of 0.4. Asset B has an expected return of 15% and a reward-to-variability ratio of 0.35. 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. Answer cannot be determined given the data

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