If Asset A's Return Is Exactly Two Times Asset B's

question 100

Multiple Choice

If asset A's return is exactly two times asset B's return, then following risk return tradeoff, the standard deviation of asset A should be ________ times the standard deviation of asset B.

• A) 3
• B) 2
• C) 1
• D) 4

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Definitions:

Corporate Level

Pertains to the highest level of strategic decision-making in a company, encompassing actions and plans that affect the overall organization.

Stakeholders

Individuals or groups that have an interest, claim, or stake in a company, outcome, or project.

Functional Level

The operational layer in an organization that focuses on specific business functions such as marketing, finance, or production.

Society

A community organized around common traditions, institutions, or national identity.