The Expected Rate of Return for 3COM Is 18 Percent

question 74

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
• D)Cannot be determined

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Definitions:

American Communist Party

A political party in the United States that advocates for the principles of communism, focusing on workers' rights and the establishment of a classless society.

Racial Discrimination

A system of treating individuals unfairly based solely on their race.

Black Laborers

Refers to African American workers, historically significant in the context of slavery, segregation, and the civil rights movement, as well as their roles in the development of the U.S. economy.

Augusta Savage

An influential African American sculptor associated with the Harlem Renaissance who worked for equal rights for African Americans in the arts.