Question 1
The expected rate of return and standard deviations, respectively for four stocks are given below:
Which investment offers the highest expected return relative to its standard deviation?
◦ OPQ
◦ RST
◦ UVW
◦ XYZ
Question 2
Which of the following choices is in the correct order from less risk to more risk?
◦ corporate bonds, certificates of deposit, mutual funds that invest in stock, common stock
◦ certificates of deposit, corporate bonds, common stock, mutual funds that invest in stock
◦ certificates of deposit, mutual funds that invest in stock, common stock, corporate bonds
◦ certificates of deposit, corporate bonds, mutual funds that invest in stock, common stock