The Expected Rate of Return and Standard Deviations, Respectively for Four

question 66

Multiple Choice

The expected rate of return and standard deviations, respectively for four stocks are given below:
ABC 9%, 3%
CDE 11%, 9%
FGH 12%, 8%
IJK 14%, 10%
Which stock is clearly least desirable?

• A)ABC
• B)CDE
• C)FGH
• D)IJK

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Definitions:

Board of Directors

A group of individuals elected by shareholders to oversee the management and make major decisions for a corporation.

Hostile Takeover

An acquisition attempt by a company or individual against the wishes of the target company's management and board of directors.

Shareholder Approval

The process of obtaining consent from shareholders, typically through voting, for corporate actions or decisions.

Asset Purchase

A transaction where a buyer acquires specific assets and liabilities from a seller rather than buying the company's stock.