You Are Comparing the Returns on Two Portfolios for a 10-Year

question 37

Multiple Choice

You are comparing the returns on two portfolios for a 10-year period.Portfolio I has a lower dispersion of returns and a higher average rate of return than Portfolio II.Given this,what do you know with certainty?

• A)Portfolio I has a lower standard deviation than Portfolio II.
• B)Portfolio I consists of more dividend-paying stocks than Portfolio II.
• C)Portfolio II has less total risk than Portfolio I.
• D)Portfolio I will outperform Portfolio II over the next 10 years.
• E)Portfolio II consists of more individual stocks than Portfolio I.

---

Definitions:

Medullary Cavity

A central cavity of bone shafts where red and/or yellow marrow is stored.

Compact Bone

Type of bone that contains osteons consisting of concentric layers of matrix and osteocytes in lacunae.

Spongy Bone

A type of bone tissue that has a porous structure, found at the ends of long bones and within the interior of vertebrae, facilitating the movement of nutrients and waste.

Epiphyseal Plate

A growth plate located at the ends of long bones where new bone tissue is produced during growth in children and adolescents.