According to the Following Information, Which of the Stocks Would

question 35

Multiple Choice

According to the following information, which of the stocks would be considered riskiest in a diversified portfolio of investments? $$\begin{array} { l c c } \underline{\text { Stock }} &\underline{?} &\underline{ ?}\\ \text { ABC } & 12.5 \% & 1.0 \\\text { FGH } & 8.0 \% & 0.5 \\\mathrm { MNO } & 20.2 \% & 2.4 \\\mathrm { TUV } & 15.3\% & 30\end{array}$$

• A)Stock MNO, because it has the highest standard deviation.
• B)Stock TUV, because it has the highest beta.
• C)Stock FGH, because it has the highest s/b ratio
• D)Stock ABC, because its beta is the same as the market beta (1.0) and the market is always very, very risky.

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Definitions:

Physical Needs

Basic bodily requirements including food, water, shelter, and sleep necessary for survival.

Self-Actualization

The realization or fulfillment of one's talents and potentialities, considered as a drive or need present in everyone.

Hospice

An institution or program in which terminally ill patients receive palliative care to reduce suffering; family and friends of the dying are helped as well.

Pain Management

Medical strategies and treatments aimed at reducing, controlling, or eliminating pain.