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Assume Stock a Has a Standard Deviation of 0

question 93

True/False

Assume Stock A has a standard deviation of 0.21 while Stock B has a standard deviation of 0.10.If both Stock A and Stock B must be held in isolation,and if investors are risk averse,we can conclude that Stock A will have a greater required return.However,if the assets could be held in portfolios,it is conceivable that the required return could be higher on the low standard deviation stock.


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UCC Applies

Refers to situations where the Uniform Commercial Code, a set of laws governing commercial transactions in the United States, is applicable.

Sale Of Goods

A transaction where tangible products are exchanged between a seller and a buyer for a specified price.

Delivery Term

Refers to the conditions in a sales contract that outline the specifics of how and when the goods will be delivered to the buyer.

CFR

An abbreviation for "Code of Federal Regulations," which is a collection of the general and permanent rules published in the Federal Register by the departments and agencies of the Federal Government.

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