Question
The expected rate of return for the stock of Cornhusker Enterprises is 15 percent, with a standard deviation of 13 percent. The expected rate of
The expected rate of return for the stock of Cornhusker Enterprises is 15 percent, with a standard deviation of 13 percent. The expected rate of return for the stock of Mustang Associates is 10 percent, with a standard deviation of 10 percent.
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Which stock would you consider to be riskier? Round your answers to two decimal places.
The coefficient of variation of returns for Cornhusker's stock?:
The coefficient of variation of returns for Mustang's stock?:
-Select: IS Cornhusker's stock OR Mustang's stock riskier?
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If you knew that the beta coefficient of Cornhusker stock is 0.9 and the beta of Mustang is 1.2, how would your answer to Part a change?
Looking only at systematic risk, Select: Cornhusker's stock OR Mustang's stock is riskier?
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