Which of the Following Two Stocks Is More Volatile Based

question 172

Multiple Choice

Which of the following two stocks is more volatile based on historical returns?

• A) A because it has a lower mean
• B) B because it has a higher mean
• C) A because it has a higher standard deviation
• D) B because it has a lower standard deviation
• E) B because it has a higher variance

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Definitions:

Bank

A financial institution licensed to receive deposits, offer loans, and provide various financial services to individuals and businesses.

Substitute Check Procedure

A legal process that allows banks to use digital images of checks for clearing and settlement instead of the original paper checks.

Fraudulently Alters

The illegal modification or change of a document, item, or product with the intention to deceive for personal gain.

Embezzles

Illegal taking of funds or assets by a person to whom they were entrusted.