Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

33. Which one of the following statements is wrong in describing the use of the Average Growth Rat and the Standard Deviation of a stock

image text in transcribed
33. Which one of the following statements is wrong in describing the use of the Average Growth Rat and the Standard Deviation of a stock returns for investment decision-making? The Standard Devaition is used to set ranges of return above (or under) the Average return expected. Investors can expect the Average for their return if the past trend continues when risk is not considered Investors are advised to select the one that has the highest value of both for their investing. Investors are advised to go for the highest Average with the lowest Standard Deviation. 34. the Coefficient of Variance (Standard Deviation divided by Average) to choose one investing opportunity from a group. We are advised to select the lowest value (of the Coefficient of Variance). Which one of the following statements best describes the meaning of this method? By applying this method, we are selecting the investment opportunity that provides the highest return. By applying this method, we are selecting the opportunity that imposes the lowest risk. By applying this method, we are selecting the opportunity that provides the best return regardless of the risk. By applying this method, we are selecting the opportunity that imposes the highest Return that compensates the risk involved

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Chains Of Finance How Investment Management Is Shaped

Authors: Diane-Laure Arjalies, Philip Grant, Iain Hardie, Donald MacKenzie, Ekaterina Svetlova

1st Edition

0198802943, 978-0198802945

More Books

Students also viewed these Finance questions

Question

Classify delivery styles by type.

Answered: 1 week ago