Consider the information relating to the following three investments; A, B and C: ...

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Accounting

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 Solved by verified expert
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