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Kevin Recently Received an Inheritance, and He Is Planning to Invest

Question 27

Multiple Choice

Kevin recently received an inheritance, and he is planning to invest the inheritance in one of four stock portfolios. Which of these portfolios would you expect to have the highest average annual rate of return?


A) A portfolio with a standard deviation of 5%.
B) A portfolio with a standard deviation of 6%.
C) A portfolio with a standard deviation of 8%.
D) A portfolio with a standard deviation of 9%.

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