Author Question: A more risky stock has a higher ________. A) expected return B) standard deviation C) variance ... (Read 450 times)

vicotolentino · **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

AngeliqueG · **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