Which of the following statements about the mean-variance criterion is correct?   The mean return equals the riskless interest. Investors select assets that provide the highest variance for the same or higher expected return. Investors select assets that provide the highest rate of return. Investors select assets that provide the lowest variance for the same or higher expected return.

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter8: Analysis Of Risk And Return
Section: Chapter Questions
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Which of the following statements about the mean-variance criterion is correct?

 

  1. The mean return equals the riskless interest.
  2. Investors select assets that provide the highest variance for the same or higher expected return.
  3. Investors select assets that provide the highest rate of return.
  4. Investors select assets that provide the lowest variance for the same or higher expected return.
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