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

question 13

Multiple Choice

The expected rate of return and standard deviations, respectively for four stocks are given below: $$\begin{array} { l l } \mathrm { OPQ } & 11\%,8\%\\\mathrm { RST } & 11\%,9 \% \\\mathrm { UVW } & 12\%,10 \% \\\mathrm { XVZ } & 12 \% ,8\%\end{array}$$ Which investment offers the highest expected return relative to its standard deviation?

• A) OPQ
• B) RST
• C) UVW
• D) XYZ

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Definitions:

Alcohol Use Disorder

A medical condition characterized by an impaired ability to stop or control alcohol use despite adverse social, occupational, or health consequences.

Abstinence Violation Effect

A phenomenon occurring when an individual in recovery from substance use lapses or relapses, leading to feelings of guilt and perceived failure, potentially exacerbating further substance use.

Pre-Treatment

A stage or activities that occur before the commencement of a primary treatment, often involving assessment or preparatory interventions.

Abstinence Violation

A concept in addiction recovery that refers to a person's sense of failure or guilt after breaking a commitment to abstain from substance use or certain behaviors.