AAFM Chartered Wealth Manager (CWM) Certification Level II Examination CWM_LEVEL_2 Question # 304 Topic 31 Discussion

AAFM Chartered Wealth Manager (CWM) Certification Level II Examination CWM_LEVEL_2 Question # 304 Topic 31 Discussion

CWM_LEVEL_2 Exam Topic 31 Question 304 Discussion:
Question #: 304
Topic #: 31

Section B (2 Mark)

Portfolio A has expected return of 10% and standard deviation of 19%. Portfolio B has expected return of 12% and standard deviation of 17%. Rational investors will


A.

Borrow at the risk free rate and buy A.


B.

Sell A short and buy B.


C.

Sell B short and buy A.


D.

Borrow at the risk free rate and buy B.


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