According to the Following Information, Which of the Shares Would

question 26

Multiple Choice

According to the following information, which of the shares would be considered riskiest in a diversified portfolio of investments?

• A) Share MNO, because it has the highest standard deviation.
• B) Share TUV, because it has the highest beta.
• C) Share FGH, because it has the highest s/b ratio
• D) Share ABC, because its beta is the same as the market beta (1.0) and the market is always very, very risky.

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Definitions:

Alarm

A device or mechanism designed to warn or alert individuals of potential danger or the need for immediate attention.

Perfect Scores

The highest possible marks achievable in a test or evaluation, indicating flawless performance.

Inductive Argument

An argument that attempts to show that its conclusion is supported by the premises even though the conclusion amplifies—it goes beyond—what the premises state.

Conclusion

The final part of something, typically a summary or decision made after considering all the presented information or evidence.