Question: A more risky stock has a higher A. Expected return B. Standard deviation C. Variance D. B and C Which of the statements below is

A more risky stock has a higher

A. Expected return

B. Standard deviation

C. Variance

D. B and C

Which of the statements below is NOT correct?

A. If two investment have the same expected return, the investment with the lower risk is preferred.

B. If two investment 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's is not clear which investment is the preferred choice.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

A more risky stock has a higher OA) expected return OB) standard deviation OC) variance D) standard deviation and variance A more risky stock has a higher A) expected return B) standard deviation C)...

47.) To determine the present value of a future amount, one should ________ the future cash flows. A) annuitize B) compound C) discount D) multiply 48.) Earnings per share is the ________. A) price...

a more risky stock has a higher a. expected return b. standard deviation c. variance c. both b and c

BU340 10. A riskier stock has a higher: a. expected return. b. standard deviation. c. variance. d. B and C

adjust rapidly to new information UI the efficient markets hypothesis J. future stock returns cannot be predicted from any information that is publicly aaese C. corporate insiders should have no...

DO NOT COPY PASTE 1. Maria phone ltd needs TK. 5000000 to finance its processing equipment's. Rural Bank Itd agreed to meet the requirement @ 12 % interest. The loan should be paid in next 4 years....

1. Maria phone ltd needs TK. 5000000 to finance its processing equipment's. Rural Bank Itd agreed to meet the requirement @ 12 % interest. The loan should be paid in next 4 years. You are requires to...

Choose the most suitable answer. 1. Geo Ltd. now is preparing a bond offering with an 8% coupon rate. The bonds will be repaid in 10 years. The company plans to issue the bonds at par value. Which of...

Assignment 1 Instructions Assignment 1 should be submitted after you have completed Unit 2. This assignment is worth 15 percent of your final grade. Assignment 1 contains five problems. The maximum...

Problem 01. 1. Your portfolio consists of 250 shares of Stock K with a current market price of $40 per share, 150 shares of Stock Q with a current market price of $25 per share and $8,000 invested in...

Deduce that, for all y 1 ,y 2 ,...,y n >0 , (y 1/ y 2 ) + (y 2 /y 3 ) + ... + (y n-1 /y n ) + (y n /y 1 ) n

In a campus restaurant it was found that 35% of all customers order vegetarian meals and that 50% of all customers are students. Further, 25% of all customers who are students order vegetarian meals....

How do changes in cost per unit affect the profit of specific product lines

SIMAD UNIVERSITY Class: BACC25 Subject: Islamic Accounting Instructions: a) Follow The Instructions. Midterm Exam Instructor: All Ibrahim Date: 6-4-2022 b) You Have 1.5 Hrs. To Complete This Test. c)...

(Appendices) COMPONENTS OF COST OF GOODS SOLD. Annas Corner Store has the following data for a recent year. LO9

(Appendices) TERMS OF SHIPMENT AND ENDING INVENTORY. On December 31, Archive Products had two shipments of merchandise in transit from different suppliers. The first shipment, which arrived on...

(Appendices) PURCHASES, SALES, AND COST OF GOODS SOLD. The following data were available for Jeans Inc., a seller of denim clothing, at January 1 of a recent year: Jeans Inc. records purchases and...