Stock a Has a Coefficient of Variation of 30% and Stock

question 60

Multiple Choice

Stock A has a coefficient of variation of 30% and stock B has a coefficient of variation of 35%.Based on this measure of risk, which stock would be considered riskier?

• A)Stock A
• B)The values are so close, they would be considered to have the same level of risk
• C)Stock B
• D)Risk cannot be measured by the coefficient of variation
• E)There is not enough information to answer

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Definitions:

False Consensus Effect

The cognitive bias to overestimate how much other people share our beliefs, attitudes, and behaviors.

Self-serving Bias

The common habit of a person taking credit for positive events or outcomes, but blaming outside factors for negative events.

Locus Of Control Bias

A cognitive bias where an individual attributes successes and failures to either internal or external factors disproportionately.

Achievement-related Results

Outcomes or successes in tasks or goals that are valued in a cultural or societal context, often measured through performance or attainment.