If Asset A's Return Is Exactly Two Times Asset B's

question 56

Multiple Choice

If asset A's return is exactly two times asset B's return, then following risk return tradeoff, the standard deviation of asset A should be _ times the standard deviation of asset B.

• A) 1
• B) 4
• C) 2
• D) 3

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Definitions:

Eustress

A stress that has a positive impact on both attitudes and performance.

Negative Impact

An adverse effect or detriment to something's condition, performance, or well-being.

Attitudes

A settled way of thinking or feeling about someone or something, typically reflected in a person's behavior.

Dogmatism

Leads a person to see the world as a threatening place and to regard authority as absolute.