Stock A's standard deviation of returns is equal to 8%, while Stock B's standard deviation of returns is 10%. Based on this information, we know that a potential investor Select one: a. Expects Stock B's return to be farther away from its expected return that Stock A's return from its own expected return. b. Considers Stock A a more risky addition to a diversified portfolio than Stock B. O C. Considers Stock B a more risky addition to a diversified portfolio than Stock A. d. Expects Stock A to have a higher expected return that Stock B. Using the table below determine which of the statements that follow is a correct statement. Expected Return St Dev of Returns 4% 6% Portfolio A Portfolio B Portfolio Portfolio D 2% 10% 13% Select one: O a. Portfolio A dominates Portfolio D. b. Portfolio A dominates Portfolio B. C. Portfolio D dominates Portfolio C. O d. Portfolio B dominates Portfolio C. Stock A's P/E ratio is 25, while stock B's P/E ratio is 15. Based on this information we could reason that Select one: O a. Stock B has a higher earnings per share than stock A. b. Stock B's earnings are expected to grow faster in the future. C. Stock A's earnings are expected to grow faster in the future. O d. Stock A has a higher stock price than stock B. Stock A's standard deviation of returns is equal to 8%, while Stock B's standard deviation of returns is 10%. Based on this information, we know that a potential investor Select one: a. Expects Stock B's return to be farther away from its expected return that Stock A's return from its own expected return. b. Considers Stock A a more risky addition to a diversified portfolio than Stock B. O C. Considers Stock B a more risky addition to a diversified portfolio than Stock A. d. Expects Stock A to have a higher expected return that Stock B. Using the table below determine which of the statements that follow is a correct statement. Expected Return St Dev of Returns 4% 6% Portfolio A Portfolio B Portfolio Portfolio D 2% 10% 13% Select one: O a. Portfolio A dominates Portfolio D. b. Portfolio A dominates Portfolio B. C. Portfolio D dominates Portfolio C. O d. Portfolio B dominates Portfolio C. Stock A's P/E ratio is 25, while stock B's P/E ratio is 15. Based on this information we could reason that Select one: O a. Stock B has a higher earnings per share than stock A. b. Stock B's earnings are expected to grow faster in the future. C. Stock A's earnings are expected to grow faster in the future. O d. Stock A has a higher stock price than stock B
