Which of the Following Two Stocks Is More Volatile Based

question 180

Multiple Choice

Which of the following two stocks is more volatile based on historical returns?

• A) A because it has a lower mean
• B) B because it has a higher mean
• C) A because it has a higher standard deviation
• D) B because it has a lower standard deviation
• E) B because it has a higher variance

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Definitions:

Significantly Correlated

A statistical relationship between two variables where changes in one variable are reliably associated with changes in another variable, often verified through statistical tests.

Caffeine Consumed

The amount of caffeine intake in a given period; not a key term in a statistical or general scientific context, thus NO.

P < 0.05

A statistical significance level indicating that there is less than a 5% probability the observed results occurred by chance, suggesting a significant difference or effect.

Directional

A hypothesis that specifies the direction of the expected relationship between variables.