George has $7,500 to invest in a mutual fund. The expected return on mutual fund A is 10% and the expected return on mutual fund B is 12%. Should George pick mutual fund A or B? Group of answer choices a) He should pick mutual fund B because it has a higher expected return. b) If George is young, he should pick B because it has a higher expected return, regardless of risk. c) Since individuals are risk-averse, he should pick A because its lower expected return implies lower risk. d) There is not enough information to make the determination because the decision also depends on the variability of the expected return and George’s attitude toward risk.
George has $7,500 to invest in a mutual fund. The expected return on mutual fund A is 10% and the expected return on mutual fund B is 12%. Should George pick mutual fund A or B? Group of answer choices a) He should pick mutual fund B because it has a higher expected return. b) If George is young, he should pick B because it has a higher expected return, regardless of risk. c) Since individuals are risk-averse, he should pick A because its lower expected return implies lower risk. d) There is not enough information to make the determination because the decision also depends on the variability of the expected return and George’s attitude toward risk.
Algebra and Trigonometry (6th Edition)
6th Edition
ISBN:9780134463216
Author:Robert F. Blitzer
Publisher:Robert F. Blitzer
ChapterP: Prerequisites: Fundamental Concepts Of Algebra
Section: Chapter Questions
Problem 1MCCP: In Exercises 1-25, simplify the given expression or perform the indicated operation (and simplify,...
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George has $7,500 to invest in a mutual fund. The expected return on mutual fund A is 10% and the expected return on mutual fund B is 12%. Should George pick mutual fund A or B?
Group of answer choices
a) He should pick mutual fund B because it has a higher expected return.
b) If George is young, he should pick B because it has a higher expected return, regardless of risk.
c) Since individuals are risk-averse, he should pick A because its lower expected return implies lower risk.
d) There is not enough information to make the determination because the decision also depends on the variability of the expected return and George’s attitude toward risk.
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