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Author Question: A more risky stock has a higher ________. A) expected return B) standard deviation C) variance ... (Read 439 times)

vicotolentino

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on: Jul 10, 2018
A more risky stock has a higher ________.
 
  A) expected return
  B) standard deviation
  C) variance
  D) B and C

Question 2

The Horizons Bear Plus Fund seeks daily expected returns that are two times (200) the inverse (opposite) of the performance of the S&P 500 Index. If kF = 5 and E(kM) =10, what is the Beta coefficient for the Bear Plus Fund?
 
  A) -0.5
  B) -2.0
  C) -4.0
  D) -5.0
  E) +1.0


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AngeliqueG

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Reply #1 on: Jul 10, 2018
Answer to Question 1

Answer: D
Explanation: D) Standard deviation and variance essentially tell you the same thinga stock's volatility or risk.

Answer to Question 2

D


vicotolentino

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Reply 2 on: Jul 10, 2018
Great answer, keep it coming :)

bbburns21

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

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