Question: If a stock has an expected rate of return of 12%, and the standard deviation is 11%, then its annual return will never be negative.

If a stock has an expected rate of return of 12%,

If a stock has an expected rate of return of 12%, and the standard deviation is 11%, then its annual return will never be negative. True or False? True False

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!

Question 1 of 30 3 Points If a stock has an expected rate of return of 12%, and the standard deviation is 11%, then its annual return will never be negative. True or False? True False

C)9% D) 11% You invest $100 in a complete portfolio. The complete portfolio is composed of a risky asset with an expected rate of return of 12% and a standard deviation of 15% and a treasury bill...

Question 11 (1 point) The term inflation refers to Question 11 options: A) an increase in nominal interest rates B) an increase in real interest rates C) an increase in general price levels D) an...

Hey, you answered some questions a while ago but 5 of them were wrong. Is that possible for you make them right? Here are the questions: Red highlighting means wrong. QUESTION 1 An implication of the...

Problem 1 (10 marks). Assume the annual fixed term deposit rate is 3.4% in a New Zealand bank. Mary has $10,000 and plans to deposit into the bank for two years. She also wants the bank to reinvest...

full working please Problem 1 (20 marks). Stocks offer an expected rate of return of 18%, with a standard deviation of 22%. Gold offers an expected return of 10% with a standard deviation of 30%. a)...

16. Diversification is most effective when security returns are: negatively correlated positively correlated low high uncorrelated 17. An investor invests 40% of her wealth in a risky asset with an...

Problem 1 (10 marlos). Assume the annual fixed term deposit rate is 3.4% in a New Zealand bank. Mary has $10,000 and plans to deposit into the bank for two years. She also wants the bank to reinvest...

1. You invest $1,000 in a complete portfolio. The complete portfolio is composed of a risky asset with an expected rate of return of 16% and a standard deviation of 20% and a Treasury bill with a...

You invest $1,000 in a complete portfolio. The complete portfolio is composed of arisky asset with an expected rate of return of 16% and a standard deviation of 20% and a Treasury bill with a rate of...

The H- ion and the He atom have two 1s electrons each. Which of the two species is larger? Explain.

Choose a local restaurant in your community. After describing the business in some depth to me, Apply the following questions to that business. P.s. this question is worth 10 points - with all the...

Your company markets antifreeze. Sales to consumers take place in a very short period, primarily September through December. You want to tie in a promotion between your brand and the brand of another...

which best describes an individual's "mixture" of investments A. Traditional IRA B. Asset Allocation C. Long Term Fund D. Dollar Cost Averaging

8. What values do you want others to associate you with?

15. Now rank from 1 to 5 the areas that you think are most important to emphasize when communicating with others (1 is least important and 5 is most important to you). If you think it all depends on...

12. The form of creative action strategy, where would you say you have a strength, as a dreamer, as a realist or as a critic?