A Stock Has an Expected Return of 10% and a Variance

question 147

Multiple Choice

A stock has an expected return of 10% and a variance of 25%. Its coefficient of variation is:

• A)2.5.
• B)0.4.
• C)5.0.
• D)2.0.

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Definitions:

Quantitative Model

A representation of a real situation in numerical terms, often used to forecast future behavior, outcomes, or trends based on historical data.

Qualitative Model

A framework for analysis that uses non-numeric data to understand patterns, concepts, opinions, or experiences.

Demand Forecast

The estimation of the quantity of a product or service that consumers will purchase in the foreseeable future.

Regression Analysis

A method in statistics employed to explore how a dependent variable interacts with one or several independent variables.