If the Variance in Returns for Stock a Is 400

question 107

Multiple Choice

If the variance in returns for Stock A is 400% and the expected return is 5%, then the coefficient of variation is:

• A) 4
• B) 80
• C) .25
• D) cannot be determined by this information

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Definitions:

Consumer Preferences

The inclinations or choices of individuals or groups regarding various goods and services that reflect taste, convenience, affordability, and other factors.

Marginal Rate of Substitution

The rate at which a consumer is willing to give up one good in exchange for another, keeping utility constant.

Rational

The quality of being based on or in accordance with reason or logic.

Indifference Curves

A graph representing different bundles of goods between which a consumer is indifferent, showing equal levels of utility.