The expected return on Stock X and Stock Y are the same (10%). The standard deviation of

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The expected return on Stock X and Stock Y are the same (10%). The standard deviation of Stock X is 25% and the standard deviation of Stock Y is 20%. Which of the following statements is correct?

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Since both stocks have the same expected return, their risk profiles are the same.

Stock Y has less risk as implied by the coefficient of variation.

Stock Y has more risk per unit of return than Stock X

Stock X has less risk as implied by the coefficient of variation.

Posted Date: Jun 06, 2024 12:14 AM

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The expected return on Stock X and Stock Y are the same (10%). The standard deviation of

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