You are evaluating two investments, A and B. Data appear below: AB Expected return 10% 12% Highest possible return 20% 14% Lowest possible return 0% - 4% The riskier investment is
A)
A, because it has a lower expected return.
B)
A, because it has a wider range of returns.
C)
B, because it has a possible loss.
D)
B, because its possible highest return is less than A.
B
You might also like to view...
Answer the following statements true (T) or false (F)
1. Corporations, government, and other institutions in society set the social agenda, not the media. 2. A "think tank" is an organization that researches and analyzes various important social, economic, and political issues confronting society. 3. A business's response to social issues should be driven by the organization's core values. 4. One's religious beliefs influence their ethics and their managerial behaviour. 5. Confucianism is incompatible with most managerial practices in the western world.
The treasurer for Kent Enterprises was preparing a bank reconciliation as of October 31, 2012, when the following items were identified: Balance per Kent's company records $32,800 Deposits in transit 4,300 Outstanding checks 2,200 Interest earned on the checking account 100 NSF check from Kent's customer 400 Kent's adjusted cash balance at October 31, 2012, is:
A) $34,600. B) $34,900. C) $32,500. D) $32,800.
You are in a meeting receiving your performance review and are surprised that your supervisor has offered you many suggestions for improvement. How should you react to the criticism?
A) Interrupt your supervisor frequently to comment on his or her suggestions so that you don't miss giving feedback on anything. B) To avoid any type of confrontation with your supervisor, agree with all comments made. C) Try to deflect blame for anything negative said to others in your department. D) Ask for clarification of comments when necessary.
Which of the following statements is true concerning benchmarking?
A) It studies the "best in class" organizations. B) It seeks improvement by analyzing the internal process. C) It studies only organizations in the same industry. D) It is a process for determining performance measures for the shop floor.