which stock would be preferable to an investor with strong risk appetite. Historical Mean Returns 25%,...
which stock would be preferable to an investor with strong risk appetite. Historical Mean Returns 25%, historical standard deviation 30%; or historical mean returns 10%, historical standard deviation 30%; or historical mean returns 10%, historical standard deviation 5%
Homework Answers
Any investor who has a very strong risk appetite, will always prefer a stock with higher returns and higher standard deviation, so preferred stock would be :
"Historical Mean Returns 25%, historical standard deviation 30%"
=> This is because he like to have higher return on its investments and can afford to deviation in the stock price.
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which stock would be preferable to an investor with strong risk
appetite. Historical Mean Returns 25%,...
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