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Author Question: If stock A has a greater standard deviation than stock B then it must also have a greater return. ... (Read 88 times)

daltonest1984

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on: Jul 10, 2018
If stock A has a greater standard deviation than stock B then it must also have a greater return.
 
  Indicate whether the statement is true or false.

Question 2

Which of the following statements about probabilities is INCORRECT?
 
  A) The sum of all probabilities of a particular event must sum to 100.
  B) Each possible outcome must have a non-negative probability.
  C) Probability is a statistical tool for estimating future outcomes.
  D) Probability is associated with an ex-post view.


joechoochoy

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

Answer: FALSE
Explanation: If stock A has a greater standard deviation than stock B then it WILL LIKELY have a greater EXPECTED return.

Answer to Question 2

Answer: D
Explanation: D) Probability is associated with an ex-ante view.


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