A Stock Has an Expected Return of 12 Percent and a Standard

question 27

Multiple Choice

A stock has an expected return of 12 percent and a standard deviation of 25 percent. Long-term Treasury bonds have an expected return of 5 percent and a standard deviation of 9 percent. Given this data, which of the following statements is correct?

• A) The two assets have the same coefficient of variation.
• B) The stock investment has a better risk-return trade-off.
• C) The bond investment has a better risk-return trade-off.
• D) The stock investment and the bond investment have the same diversifiable risk.

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Definitions:

Sexually Transmitted Infection

Infections that are primarily spread through sexual contact, including viruses, bacteria, and parasites.

Brothel

A place of business where people engage in sexual activity with sex workers in exchange for monetary compensation.

Condom

A barrier device commonly used during sexual intercourse to reduce the risk of pregnancy and spreading sexually transmitted infections.

Sex Therapist

is a professional specialized in diagnosing and treating sexual disorders and difficulties through counseling and therapy.