If the Variance in Returns for Stock a Is 400

question 107

Multiple Choice

If the variance in returns for Stock A is 400% and the expected return is 5%, then the coefficient of variation is:

• A) 4
• B) 80
• C) .25
• D) cannot be determined by this information

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Definitions:

Buying Bonds

The act of purchasing debt securities issued by governments or corporations, which pay interest over a fixed period.

Money Supply

The aggregate sum of funds present in an economy at a given moment, encompassing cash, bank deposits, and various readily accessible assets.

Interest Rate

The percentage of a sum of money charged for its use, often expressed as an annual percentage.

Reserve Requirements

The minimum proportion of customer deposits and notes that a bank must hold as reserves rather than lending out, as mandated by central banking authorities.