question archive You have developed the following data on three stocks: Stock Standard Deviation Beta A 0
You have developed the following data on three stocks: Stock Standard Deviation Beta A 0
Subject:FinancePrice:2.87 Bought7
You have developed the following data on three stocks:
Stock Standard Deviation Beta
A 0.15 0.79
B 0.25 0.61
C 0.20 1.29
If you are a risk minimizer, you should choose Stock _____ if it is to be held in isolation and Stock _____ if it is to be held as part of a well?diversified portfolio.
| A. |
A;A |
|
| B. |
A;B |
|
| C. |
B;A |
|
| D. |
C;A |
|
| E. |
C;B |
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| Answer :a.b: | |||||||||||
| Standard deviation | |||||||||||
| the meaning of standard deviation is to measure the spread of scores with in a set of data .its also measure | |||||||||||
| the how much an investments return can vary from its average return. Low standard deviation indicate | |||||||||||
| low risk. | |||||||||||
| Beta | |||||||||||
| if u want to investing in the stock market there are lots of important consideration | |||||||||||
| you must take in your account befor deciding what stock you want to purchase.most important consideration is a how much | |||||||||||
| risk you are willing to take.looking a beta value is the another way of consendering | |||||||||||
| he risk factor of stock.,according to the rule,the higher the risk,the higher the potential return. | |||||||||||
| * Here,lower standard deviation is .15 and lower beta is .61 | |||||||||||
