Stock ABC Has an Expected Return of 12% and a Standard

question 92

Multiple Choice

Stock ABC has an expected return of 12% and a standard deviation of 48%. Which of the following stocks dominate Stock ABC?

• A) Expected return = 14%; Standard deviation = 53%
• B) Expected return = 10%; Standard deviation = 31%
• C) Expected return = 13%; Standard deviation = 45%
• D) Expected return = 11%; Standard deviation = 52%
• E) None of these stocks dominate stock 'ABC'.

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Definitions:

Issued

Referring to securities or documents that have been officially released or distributed by an entity.

Due Date

The specific date by which a task needs to be completed or a payment needs to be made.

Maker

An entity or individual who creates or produces something, often used in contexts such as product manufacturing or software development.

Maturity

The date on which a financial obligation, such as a bond or loan, is due to be paid in full.