Dividing the Standard Deviation of the Returns of a Stock

question 47

Multiple Choice

Dividing the standard deviation of the returns of a stock by the stock's expected return gives us the stock's _____. 

• A)variance
• B)risk premium
• C)coefficient of variation
• D)beta
• E)correlation coefficient

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Definitions:

Coal

A natural, black or brownish-black sedimentary rock used primarily as a fuel source in electricity generation and steel production.

Petroleum

A liquid mixture of hydrocarbons that is present in certain rock strata and can be extracted and refined to produce fuels including gasoline, kerosene, and diesel oil.

Domestic Fuel

Fuels used for household purposes, such as cooking, heating, or electricity generation, which include natural gas, coal, and biofuel.

Net Energy Ratio

A measure comparing the amount of energy delivered by a system to the amount of energy used to build, maintain, and operate the system.