According to the Definitions Given in the Text, If Stock

question 10

Multiple Choice

According to the definitions given in the text, if Stock A has a standard deviation of 4% and expected returns of 9%, and Stock B has a standard deviation of 3% and returns of 1%, which stock is riskier?

• A) Stock A
• B) Stock B
• C) they are equally risky
• D) cannot determine from the information given

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Definitions:

Earners

Individuals or entities that receive income in exchange for providing goods or services, or through investments.

Revenue

The total income generated from the sale of goods or services before any expenses are subtracted.

Federal Government

The national government of a federal state, which shares sovereignty with subnational governments such as states or provinces.

User Charges

Fees paid directly for the use of public goods or services by the individuals or entities that use them.