The Standard Deviation of the Stock a Is Twice as High

question 7

Multiple Choice

The standard deviation of the stock A is twice as high as the stock B Which of the following statements is the most correct?

• A) in bull markets their returns will probably be the same
• B) in bull market stock A will probably produce a higher return
• C) in bear market stock B will probably decline more than stock A
• D) in flat market stock B will probably outperform S&P 500

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