Which One of the Following Stocks Has the Highest Expected

question 11

Multiple Choice

Which one of the following stocks has the highest expected risk premium?
$\begin{array}{lcr}\text { Stock}& \text { Standard deviation }&\text { Beta }\\\text { A } & 148 & 1.36 \\\text { B } & 21 & .98 \\\text { C } & 34 & 1.02 \\\text { D } & 8 & 1.18\\\text { E }&17&1.27\end{array}$

• A)A
• B)B
• C)C
• D)D
• E)E

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Definitions:

Division I

The highest level of intercollegiate athletics sanctioned by the National Collegiate Athletic Association (NCAA) in the U.S., known for its rigorous competition and athletic scholarships.

College Football

An American football played by teams of student athletes fielded by American colleges, universities, and military academies.

Continuous Random Variable

A variable that can take an infinite number of possible values within a given range.

Probabilities

The measure of the likelihood that an event will occur, represented as a number between 0 and 1, where 1 indicates certainty.