Microeconomies Assume two investment opportunities have identical expected values of $60,000. Investment A has a variance of 5,000 and investment B has a variance of 18,000. We would expect a risk loving investor to prefer (Select all that applies) Group of answer choices a) A because it has more risk. b) B because of its higher potential earnings. c) A because it provides higher potential earnings. d) B because it has more risk.

Microeconomies Assume two investment opportunities have identical expected values of $60,000. Investment A has a variance of 5,000 and investment B has a variance of 18,000. We would expect a risk loving investor to prefer (Select all that applies) Group of answer choices a) A because it has more risk. b) B because of its higher potential earnings. c) A because it provides higher potential earnings. d) B because it has more risk.

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter2: Fundamental Economic Concepts

Section: Chapter Questions

Problem 6E

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