This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: A more risky stock has a higher ________. A) expected return B) standard deviation C) variance ... (Read 486 times)

vicotolentino

  • Hero Member
  • *****
  • Posts: 552
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


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

AngeliqueG

  • Sr. Member
  • ****
  • Posts: 343
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

  • Member
  • Posts: 552
Reply 2 on: Jul 10, 2018
YES! Correct, THANKS for helping me on my review

FergA

  • Member
  • Posts: 352
Reply 3 on: Yesterday
Gracias!

« previous next »
 

Did you know?

Always store hazardous household chemicals in their original containers out of reach of children. These include bleach, paint, strippers and products containing turpentine, garden chemicals, oven cleaners, fondue fuels, nail polish, and nail polish remover.

Did you know?

There can actually be a 25-hour time difference between certain locations in the world. The International Date Line passes between the islands of Samoa and American Samoa. It is not a straight line, but "zig-zags" around various island chains. Therefore, Samoa and nearby islands have one date, while American Samoa and nearby islands are one day behind. Daylight saving time is used in some islands, but not in others—further shifting the hours out of sync with natural time.

Did you know?

In the ancient and medieval periods, dysentery killed about ? of all babies before they reach 12 months of age. The disease was transferred through contaminated drinking water, because there was no way to adequately dispose of sewage, which contaminated the water.

Did you know?

Liver spots have nothing whatsoever to do with the liver. They are a type of freckles commonly seen in older adults who have been out in the sun without sufficient sunscreen.

Did you know?

Atropine was named after the Greek goddess Atropos, the oldest and ugliest of the three sisters known as the Fates, who controlled the destiny of men.

Defensive mutualism involves species that receive food or shelter in return for providing protection Defensive mutualism involves species that receive food or shelter in return for providing protection
Longer regions have more crossovers and thus higher recombinant frequencies Longer regions have more crossovers and thus higher recombinant frequencies
Lymphatic vessels (green) pick up excess tissue fluid, purify it in lymph nodes, and return it to th Lymphatic vessels (green) pick up excess tissue fluid, purify it in lymph nodes, and return it to th
Apidium may be ancestral to all later higher primates and is reconstructed as looking like a small-b Apidium may be ancestral to all later higher primates and is reconstructed as looking like a small-b
How to manually find the mean, variance, and standard deviation for a set of numbers How to manually find the mean, variance, and standard deviation for a set of numbers
Write the following in standard form Write the following in standard form
Video: Phases of an Action Potential - Resting Potential, Threshold, Rising, Falling, & Recovery Phases

For a complete list of videos, visit our video library