If Returns on Stock a Are More Volatile Than the Returns

question 79

Multiple Choice

If returns on stock A are more volatile than the returns on stock B,the geometric average return of stock A is ________ the geometric average return of stock B when their arithmetic average return is the same.

• A)the same as
• B)higher than
• C)lower than
• D)cannot say for sure

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Definitions:

Cotyledons

Embryonic leaf in seed-bearing plants, the first to appear from a germinating seed.

Ovule

In seed plants, a structure that contains the female gametophyte and has the potential to develop into a seed.

Seed

The reproductive unit of a flowering plant, capable of developing into another such plant.

Botanically

Relating to the scientific study of plants, including their physiology, structure, genetics, ecology, distribution, and classification.