Question: Held individually, which stock has the least variation in returns? Using the data from Question 1, which stock is least risky according to the

Held individually, which stock has the least variation in returns? Using the data from Question 1, which stock is least risky according to the coefficient of variation? Stoc k A B Expected Return 11% 14% Standard Deviation 15% 18%

Step by Step Solution

★★★★★

3.42 Rating (146 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

The standard deviation of Stock A is 15 Stock B is 18 Therefore Stock As return ... View full answer

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!

Discuss about simulation models and situations in which they could be applicable. Discuss also about Monte Carlo Model of Simulation Models.

Mrs. B, recently widowed and in her mid to late 40s, is a senior executive working for a Singapore-based multi-national corporation with SGD 10 billion in global sales. She has a son aged 20 and a...

Q1 -Hi Can you write 3 things or more you learned about this chapter Chapter9 Learning Objectives After reading and studying this chapter, you should be able to do the following: 9.1 Differentiate...

An index number provides a simple way to compare measurements made at different times or in different places The Cost of Living Index COLI is an index number used to compare expenses from one town or...

Based on the following information, which stock has the least risk? Stock Price Required Return A $4.65 14.39% B $31.18 8.44% C $65.22 5.73% D $297.13 10.62% Stock A Stock B Stock C Stock D

Question 6 (3.5 points) The following table shows the beta and standard deviation of four different stocks. Which stock has the least amount of standalone risk (te, total risk)? Stock Beta Standard...

(Arbitrage) The following is a scenario for the three stocks constructed by the security analysts of Desautels investment management. Scenario rate of return Stock Price Recession Average A 10 -15 20...

There are 6 questions, please see questions in attached file. Please use information in the pdf file to answer those questions. GXM79748_085 Dec. 31 2021 Page 1 Round 1 Summary Report The summary...

Section Exercise 4-23 (Algo) In fuel economy tests in city driving conditions, a hybrid vehicle's mean was 46.6 mpg with a standard deviation of 2.7 mpg. A comparably sized gasoline vehicle's mean...

2. Using the following returns, calculate the expected returns, the variance, standard deviations and coefficient of variation for X and Y. Which stock is the least risky? Prob Rx Ry 20% 12.20 9.65...

Sox Corporation purchased a 40% interest in Hack Corporation for $1,800,000 on January 1, 2016. On November 1, 2016, Hack declared and paid $2.2 million in dividends. On December 31, Hack reported a...

Modifiability comes in many flavors and is known by many names. Find one of the IEEE or ISO standards dealing with quality attributes and compile a list of quality attributes that refer to some form...

The superfluid transition temperature ( ) of a liquid depends on the density of the

harry jones, CEO of halifax Inc has recently heard a lot about big data analytics and wants to initiate a data analysis program in the company which has a substantial volume of historic structures...

MAKE SURE ALL FORMULAS ARE CORRECTLY ENTERED MAKE SURE ALL FORMULAS ARE CORRECTLY ENTERED Jay Corporation has provided data from a two-year period to aid in planning. The Controller has asked you to...

Carol Brady lives at 461 Ocean Blvd, Savannah, GA, 31512. Ms. Brady's social security number is 256-74-8432, and she is 55 years old. Carol was widowed in 2020; her husband of many years, Mike, died...

Step 1: Create a high-level Process Flow across the two companies Create your list of tasks or process steps that you think need to be done to take Fleetwings and FBN from start to finish. Start...

Caso: Utilizacin de aguas lluvias en viviendas para un proyecto de urbanizacin en Copan. La Ing. Martha Zelaya est considerando implementar un sistema de captacin de aguas lluvias para el consumo...

Miller Company's contribution format income statement for the most recent month is shown below:\table[[Sales (27,600 units),Total,Per Unit],[Variabie expenses,$248,400,$9.00

During recent years, Micro Chips Corp. has enjoyed substantial economic profits derived from patents covering a wide range of inventions and innovations for microprocessors used in high-performance...

Assume Kanata Corporation is a leading manufacturer of telecommunications equipment based in Ontario, Canada. Its main product is microprocessor controlled telephone switching equipment, called...

The Organization of the Petroleum Exporting Countries (OPEC) was formed on September 14, 1960 in Baghdad, Iraq. The current membership is comprised of five founding members plus six others: Algeria,...

14. How does the minimalist position differ from the abolitionist position?

12. What are two plausible ways for possible altruistic genes to spread in a population?

10. What is the difference between a hyperpolarization and a depolarization?