Asset Expected Return Beta
Stock A 9% 0.9
Stock B 11% 1.4
Risk-Free Asset 5%
Consider the assets outlined in the table above. Which asset offers the best risk-return trade-off?
A) Stock A
B) Stock B
C) The risk-free asset
D) Either Stock A or Stock B as both have the same risk-return trade-off
A
You might also like to view...
The main risk in a ________ approach is the substantial resources needed and the difficulty of planning entry strategies for many diverse markets
A) shotgun B) continuous C) born global D) sprinkler E) waterfall
New knowledge involves the continual interaction between ________ and ________ knowledge.
A. tacit; explicit B. detailed; tacit C. intellectual; pragmatic D. theoretical; practical
The term e-commerce is usually in reference to ________.
A. the trading of stock in power utilities B. conducting business electronically on the internet C. construction of refineries in the energy sector D. a nation's overall economic activity
The standard fixed overhead rate is usually based on the expected number of standard machine hours
Indicate whether the statement is true or false