The Expected Rate of Return for 3COM Is 18 Percent

question 117

Multiple Choice

The expected rate of return for 3COM is 18 percent, with a standard deviation of 10.98 percent. The expected rate of return for Just the Fax is 26 percent with a standard deviation of 15.86%. Which firm would be considered the riskier from a total risk perspective?

• A)3COM
• B)Just the Fax
• C)Neither, both have the same risk in a relative sense.
• D)Cannot be determined

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Definitions:

Medicare

A federal health insurance program in the United States primarily for people aged 65 and older, but also available to certain younger people with disabilities.

Palliative Care

Medical care aimed at providing relief from the symptoms and stress of a serious illness, focusing on improving quality of life for both the patient and the family.

Acute Care

A branch of secondary health care where a patient receives active but short-term treatment for a severe injury or episode of illness, an urgent medical condition, or during recovery from surgery.

Hospice Care

Specialized care designed to provide comfort and support to patients and their families during the final stages of a terminal illness.