The Expected Rate of Return and Standard Deviations, Respectively for Four

question 74

Multiple Choice

The expected rate of return and standard deviations, respectively for four stocks are given below:
$\begin{array}{ll}\mathrm{ABC} & 9 \%, 3 \% \\\mathrm{CDE} & 11 \%, 9 \% \\\mathrm{FGH} & 12 \%, 8 \% \\\text { IJK } & 14 \%, 10 \%\end{array}$
Which investment offers the lowest expected return relative to its standard deviation?

• A) ABC
• B) CDE
• C) FGH
• D) IJK

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Definitions:

Cephalic End

The cephalic end refers to the head end of an organism or embryo, where sensory organs and the brain are often located, opposite the caudal or tail end.

Endoderm

The innermost of the three primary germ layers in the embryo, giving rise to the lining of the digestive and respiratory systems.

Digestive Tube

A continuous hollow tube extending from the mouth to the anus, through which food is processed and nutrients absorbed.

Plankton

Free-floating, mainly microscopic aquatic organisms found in the upper layers of the water; consisting of phytoplankton and zooplankton. Compare with nekton.