Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. a student is comparing stocks to invest in. the fo

A student is comparing stocks to invest in. The following are the stock returns (in...

80.2K

Verified Solution

Question

Finance

A student is comparing stocks to invest in. The following are the stock returns (in dollars) in the last 10 months.

Monthly Returns

Stock A: 20, 18, 25, 17, 20, 17, 18, 8, 17, 20

Stock B 30.50, 21.67, 25, 26, -20, 45, -25, -8.20, 50, 35.

1. The standard deviation of the returns of stock B is? Select one: a. 23.72. b. 26.47. c. 18.00. d. 147.07. e. 17.00.

2. In a comparison of stock B and stock A, which of the following statements is true about stock B?

Select one:

a. Stock B is a high-risk high-return investment.

b. Stock B is a low-risk high-return investment.

c. Stock B is a high-risk normal/average-return investment.

d. Stock B is a low-risk low-return investment.

e. Stock B is a high-risk low-return investment.

The student should invest in

Select one:

a. stock A because it has lower returns.

b. stock B because it has higher standard deviation.

c. stock A because it has a lower coefficient of variation.

d. stock B because it has higher returns.

e. stock B because it has a higher coefficient of variation.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students