Final Exam $-$ Spring $2023$

Directions: Select the best answer for the following questions.

You are comparing the returns of two portfolios for a $10-$year period. Powtfolio I has a lower dispersion of returns and a higher average rate of

return than Portfolio II$.$ Given this, what do you know with certainty?

Portfolio I has a lower standard deviation than Portfolio II$.$

Portfolio I is riskier than Portfolio II$.$

Portfolio II has less total risk than Portfolio I.

Portfolio I will outperform Portfolio II over the next $10$ years.

Portfolio II consists of more individual stocks than Portfolio I.