The expected returns for Stocks A, B, C, D, and E are 7 percent, 10 percent, 12 percent, 25 percent, and 18 percent, respectively. The corresponding standard deviations for these stocks are 12 percent, 18 percent, 15 percent, 23 percent, and 15 percent, respectively. Which one of the securities should a risk-averse investor purchase if the investment will be held in isolation (by itself)?

A. A
B. B
C. C
D. D
E. E


Answer: E

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The situation when the issuer of a security fails to make the payment promised is referred to as

A. default. B. deviation. C. failure. D. defect.

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Hotels, hair salons, and auto repair businesses are considered retailers.

Answer the following statement true (T) or false (F)

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Craigmont uses the allowance method to account for uncollectible accounts. Its year-end unadjusted trial balance shows Accounts Receivable of $104,500, allowance for doubtful accounts of $665 (credit) and sales of $925,000. If uncollectible accounts are estimated to be 4% of accounts receivable, what is the amount of the bad debts expense adjusting entry?

A. $3,515 B. $3,700 C. $4,180 D. $3,850 E. $4,845

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