Question: Two assets, Q & R, each have an expected return of 11.75%. Asset Q's standard deviation is 13% and Asset R's standard deviaion is 13.2%.

  1. Two assets, Q & R, each have an expected return of 11.75%. Asset Q's standard deviation is 13% and Asset R's standard deviaion is 13.2%. A rational investor will choose:

    A.

    Either asset R or asset Q.
    B.

    Asset R.
    C.

    Asset Q.

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