The following equally likely outcomes have been estimated for the returns on Portfolio P and Portfolio Q:                                                                       
                        Scenario          Portfolio P       Portfolio Q                             
                        1                      4.0%                11.0%                         
                        2                      7.0%                -7.0%                          
                        3                      -3.0%               15.0%                         
                        4                      9.0%                -9.0%  
Which of the two portfolios is riskier?

Group of answer choices

Portfolio Q since its returns are more widely dispersed around the expected return

Portfolio P since it has the higher expected return                                                          

Portfolio Q since it has the possibility of a negative return

Both portfolios are equally risky since the possible returns of each are equally likely to occur

Answer rating: 100% (QA)

The riskiness of a portfolio can be measured by its volatility or standard deviation ... View the full answer