The table below shows the expected return and standard deviation for two stocks. Is the pattern shown
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Expected Return
The expected return is the profit or loss an investor anticipates on an investment that has known or anticipated rates of return (RoR). It is calculated by multiplying potential outcomes by the chances of them occurring and then totaling these...
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Stock Beta Std. Dev 1 1.5 22% 2 0.9 3590
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Yes this is possible A stock with a high beta might have a higher or lower standard deviation th...View the full answer
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Related Book For
Introduction to Corporate Finance What Companies Do
ISBN: 978-1111222284
3rd edition
Authors: John Graham, Scott Smart
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