Question

A rational investor will always prefer an investment with a lower standard deviation of​ returns, because such investments are less risky.*true * false ​

Answer 1

Explanation:

A rational investor will always prefer an investment with a lower standard deviation of returns, because such investments are less risky. ... As the required rate of return of an investment decreases, the market price of the investment decreases.

Answer 2

Answer: The answer is TRUE

Investor: A person or group who participates in financial scams, real estate transactions, or other types of transactions with the intention of making a profit.

Standard Deviation: A measure of how distributed the data is in reference to the mean is referred to as the standard deviation, abbreviated as. A standard deviation that is low implies that the data are concentrated close to the mean, while a standard deviation that is large shows that the data are widely dispersed.

Explanation:

• Because of the lower level of risk associated with investments that have a smaller standard deviation of returns, a rational investor will always choose the investment that has the lower return.
• When there is a reduction in the needed rate of return of an investment, the market price of the investment will also see a reduction.

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