Investment a Has an Expected Return of 7

question 36

Multiple Choice

Investment A has an expected return of 7.8% with a standard deviation of 2%.Investment B has an expected return of 7.2% with a standard deviation of 3.1%.Which stock is more likely to have a return greater than 10%?

• A)Stock A
• B)Stock B
• C)The probability is the same for both A and B.
• D)Unable to determine.

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Definitions:

Distributive Fairness

Pertains to a customer’s perception of the benefits he or she received compared with the costs (inconvenience or loss) that resulted from a service failure.

Compensation

The payment or benefits received by employees in exchange for their work or services, which can include salary, wages, benefits, and bonuses.

Cable Service

A system of delivering television programming to paying subscribers via radio frequency signals transmitted through coaxial cables.

Procedural Fairness

The perceived fairness of the processes and procedures used to make decisions, affecting individuals' satisfaction with outcomes.