If Stock a Is Considered to Be of Average Risk

question 32

Multiple Choice

If Stock A is considered to be of average risk for the market and Stock B is also considered of average risk for the market, then the

• A) standard deviation for each of the stocks will be equal
• B) beta for each of the stocks will be equal
• C) coefficient of variation for each of the stocks will be equal
• D) cannot determine from the information given

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Definitions:

Harmonized Sales Tax (HST)

A combined tax in some Canadian provinces that merges the federal goods and services tax (GST) with the provincial sales tax (PST) into a single value-added tax.

Current Liability

Obligations or debts that a company needs to settle within one year or one business cycle, whichever is longer.

Financial Liability

An obligation to pay money to another party, recorded on a company's balance sheet.

Contractual Obligation

A duty or responsibility one party owes to another under the terms of a contract.