Portfolio a of a Collection of Stocks Is Considered More

question 105

Multiple Choice

Portfolio A of a collection of stocks is considered more risky than portfolio B if:

• A) portfolio A has a higher mean than portfolio B.
• B) portfolio A has a higher variance than portfolio B.
• C) portfolio A has a higher standard deviation.
• D) portfolio A has a higher coefficient of variation than portfolio B.

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Definitions:

Rescission

The revocation, cancellation, or repeal of a contract, returning all parties involved to their positions prior to the agreement.

Restitution

The act of compensating for loss, damage, or injury caused; involves returning to the original state or compensating for loss.

Breach Of Contract

Neglecting to comply with any aspect of a contract, documented or verbal, without a lawful excuse.

Rescission

The legal act of cancelling or terminating a contract, returning the parties, as much as possible, to their positions prior to entering the agreement.