Consider these two investment strategies: Strategy 1(%) Strategy...
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Finance
Consider these two investment strategies:
| Strategy 1(%) | Strategy 2(%) | |
| Expected return | 6 | 9 |
| Standard deviation | 0 | 4 |
| Highest return | 6 | 15 |
| Lowest return | 6 | 6 |
Strategy __________ is the dominant strategy because __________.
A. 1; it has the highest reward/risk ratio
B. 2; its return is greater than or equal to the return of Strategy
C. 2; it has the highest reward/risk ratio
D. 1; it is riskless
E. Both strategies are equally preferred.
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