Question
Compare two stocks. Stock A has an expected return of 8% with a standard deviation of 12%; Stock B has an expected return of 12%
Compare two stocks. Stock A has an expected return of 8% with a standard deviation of 12%; Stock B has an expected return of 12% with a standard deviation of 8%. Which stock would a rational investor choose?
A.It depends on the investors preference between risk and return
B.Stock A
C.Stock B
D. Either one
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Islamic FinanceA Practical Perspective
Authors: Nafis Alam, Lokesh Gupta, Bala Shanmugam
1st Edition
3319665588, 9783319665580
