Asset A has an expected return of 15% and a reward-to-variability ratio of .4. Asset B has an expected return of 20% and a reward-to-variability ratio of .3. A risk-averse investor would prefer a portfolio using the risk-free asset and ______.

Respuesta :

Answer:

Asset A

Step-by-step explanation:

Asset A has an expected return of 15% and a reward - to - variability ratio of .4 . Assets B has an expected return of 20% and a reward - to - variability ratio of .3

As reward - to - variability ratio of Asset A is .4 then it will be risk-averse investor.

Asset A is risk- free asset.