Question: characteristic lines for each security. a . Which stock do you think has a higher standard deviation? Why? b . Which stock do you think
characteristic lines for each security.
a Which stock do you think has a higher standard deviation? Why?
b Which stock do you think has a higher beta? Why?
c Which stock do you think is riskier? What does the answer to this question depend on
a Which stock do you think has a higher standard deviation? Why? Select the best answer below.
A Biotech Cures stock has a higher standard deviation because its characteristic line has a higher slope.
B Biotech Cures stock has a higher standard deviation because it has a larger range of returns.
C Cyclical Industries stock has a higher standard deviation because its characteristic line has a higher slope.
D Cyclical Industries stock has a higher standard deviation because it has a larger range of returns.
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
