Stock A has a standard deviation of 10% and an expected return of 8%. Stock B has a standard deviation of 15% and an expected return of 11%. A client wants to know which stock has a better risk-return profile. How would you answer her?

Stock C has a standard deviation of 20% and a beta of 1.20. Stock D has a standard deviation of 16% and a beta of 1.44. A client wants to know which stock is riskier. How would you answer her?

Answer rating: 100% (QA)

1 a Stock As return is 8 Stock Bs return is 11 b Stock standard deviation A is equal to 10 S... View the full answer