You Own a Stock That Will Produce Varying Rates of Return

question 17

Multiple Choice

You own a stock that will produce varying rates of return based upon the state of the economy.Which one of the following will measure the risk associated with owning that stock?

• A) weighted average return given the multiple states of the economy
• B) rate of return for a given economic state
• C) variance of the returns given the multiple states of the economy
• D) correlation between the returns give the various states of the economy
• E) correlation of the weighted average return as compared to the market

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