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Which of the following portfolios is most attractive to investors? ​a.​Risk: 4%; Return: 2% ​b.​Risk: 4%;...

Which of the following portfolios is most attractive to investors?
​a.​Risk: 4%; Return: 2%
​b.​Risk: 4%; Return: 10%
​c.​Risk: 7%; Return: 8%
​d.​Risk: 7%; Return 10%
​e.​None of the above investments would attract investors


Solutions

Expert Solution

Lower the risk, higher the return.

In the question given, lower risk is 4%

And highest return is 10%

So option b) is the correct answer. As in this risk is 4% and return is 10%

jeff jeffy answered 2 years ago
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