Assume two investment opportunities have identical expected values of $100,000. Investment A has a variance of 25,000 and investment B has a variance of 10,000. We would expect most investors
(who dislike risk) to prefer
(Select all that applies)
a) A because it has less risk.
b) B because of its higher potential earnings.
c) A because it provides higher potential earnings.
d) B because it has less risk.