The Expected Rate of Return for 3COM Is 18%, with a Standard

question 40

Multiple Choice

The expected rate of return for 3COM is 18%, with a standard deviation of 10.98%. The expected rate of return for Just the Fax is 26%, with a standard deviation of 15.86%. Which firm would be considered the riskier from a total risk perspective?

• A) 3COM
• B) Just the Fax
• C) Neither, as both have the same risk
• D) Cannot be determined

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