Which of the statements below is NOT correct? A) If two investments h

Which of the statements below is NOT correct?

A) If two investments have the same expected return, the investment with the lower risk is preferred.
B) If two investments have the same expected return, the investment with the greater risk is preferred.
C) If two investments have the same expected risk, the investment with the higher expected return is preferred.
D) If one investment has a higher expected return and a greater level of risk than another, it is not clear which investment is the preferred choice.

ANSWER

Answer: B
Explanation: B) If two investments have the same expected return, the investment with the LOWER risk is preferred.