According to the Definitions Given in the Text, If Stock

question 10

Multiple Choice

According to the definitions given in the text, if Stock A has a standard deviation of 4% and expected returns of 9%, and Stock B has a standard deviation of 3% and returns of 1%, which stock is riskier?

• A) Stock A
• B) Stock B
• C) they are equally risky
• D) cannot determine from the information given

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Definitions:

Banks

Institutions licensed to receive deposits, offer loans, and provide various financial services to individuals and businesses.

Economic Problems

Issues affecting an economy, including inflation, unemployment, and poverty.

Financial Institutions

Financial institutions are organizations that provide financial services, including banks, credit unions, insurance companies, and investment firms, facilitating the flow of funds and financial transactions.

High-Income Countries

High-Income Countries are nations with a high gross national income per capita, often characterized by advanced economic development and complex industrial bases.