true or false: the standard error of estimate of the expected return is higher than the standard deviation of returns.
true or false: the standard error of estimate of the expected return is higher than the standard deviation of returns.
The higher the standard deviation of returns on a security, the _____ the expected rate of return and the _____ the risk. 1) higher; lower 2) lower; lower 3) lower; higher 4) You cannot determine anything about the expected rate of return from the standard deviation. 5) higher; higher
Stock X has a 10.0% expected return, a beta coefficient of 0.9, and a 35% standard deviation of expected returns. Stock Y has a 12.0% expected return, a beta coefficient of 1.1, and a 30.0% standard deviation. The risk-free rate is 6%, and the market risk premium is 5%. Calculate each stock's coefficient of variation. Round your answers to two decimal places. Do not round intermediate calculations. CVx = CVy = Which stock is riskier for a diversified investor? For...
The expected return and standard deviation of a portfolio of risky assets is equal to the weighted average of the individual asset's expected returns and standard deviation. Group of answer choices True False
Stock A has an expected return of 7%, a standard deviation of expected returns of 35%, a correlation coefficient with the market of -0.3, and a beta coefficient of -0.5. Stock B has an expected return of 12% a standard deviation of returns of 10%, a 0.7 correlation with the market, and a beta coefficient of 1.0. Which security is riskier? Why? 1. Stock A has an expected return of 7%, a standard deviation of expected returns of 35%, a...
7. Sharpe ratio will be higher if the expected return of the portfolio is higher and/or standard deviation of the portfolio is lower. a. True b. False
The wider the dispersion of returns on a stock, the: higher the standard deviation. lower the variance. lower the real rate of return. lower the expected rate of return.
Stock A has an expected return of 7%, a standard deviation of expected returns of 35%, a correlation coefficient with the market of 20.3, and a beta coefficient of 20.5. Stock B has an expected return of 12%, a standard deviation of returns of 10%, a 0.7 correlation with the market, and a beta coefficient of 1.0. Which security is riskier? Why?
1. Stock A has an expected return of 7%, a standard deviation of expected returns of 35%, a correlation coefficient with the market of -0.3, and a beta coefficient of -0.5. Stock B has an expected return of 12% a standard deviation of returns of 10%, a 0.7 correlation with the market, and a beta coefficient of 1.0. Which security is riskier? Why?
Stock A has an expected return of 7%, a standard deviation of expected returns of 35%, a correlation coefficient with the market of -0.3, and a beta coefficient of -0.5. Stock B has an expected return of 12% a standard deviation of returns of 10%, a 0.7 correlation with the market, and a beta coefficient of 1.0. Which security is riskier? Why? (show your work)
A more risky stock has a higher ________. expected return standard deviation variance standard deviation and variance