Question
What is the correct ranking for the following stocks, highest to lowest, based on their total risk level? Night Ryder has an average return of
What is the correct ranking for the following stocks, highest to lowest, based on their total risk level?
- Night Ryder has an average return of 15 percent and a standard deviation of 35 percent.
- WholeMart has an average return of 13 percent and a standard deviation of 25 percent
- Fruit Fly has an average return of 19 percent and a standard deviation of 30 percent.
a. (1) Fruit Fly, (2) Night Ryder, (3) WholeMart. b. (1) Night Ryder, (2) WholeMart, (3) Fruit Fly. c. (1) Night Ryder, (2) Fruit Fly, (3) WholeMart. d. (1) WholeMart, (2) Fruit Fly, (3) Night Ryder.
An investor owns 10,000 dollars of Adobe Systems stock, 15,000 dollars of Dow Chemical, and 25,000 dollars of Office Depot. What are the portfolio weights of each stock?
a. Adobe Systems = 0.3333, Dow Chemical = 0.3333, Office Depot = 0.3333. b. Adobe Systems = 0.2, Dow Chemical = 0.3, Office Depot = 0.5. c. Adobe Systems = 0.3, Dow Chemical = 0.2, Office Depot = 0.5. d. Adobe Systems = 0.2667, Dow Chemical = 0.3333, Office Depot = 0.4.
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