![QUESTION 1 According to the mean-variance criterion, which one of the following investment dominates all the others? E[r] = 0](http://img.homeworklib.com/questions/ea16a8f0-7a64-11ea-96c1-7731e2ebde41.png?x-oss-process=image/resize,w_560)
Homework Answers
Return per unit of Risk = Return / Variance
Ist = 0.20 / 0.05 = 4
2nd = 0.15 / 0.1 = 1.5
3rd = 0.10 / 0.1 = 1
4th = 0.05 / 0.1 = 0.5
Best Return per Risk is given by Ist i.e. 4
Option A is correct.
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