Question
You are comparing the returns on two portfolios for a 10-year period. Portfolio I has a lower dispersion of returns and a higher average rate
You are comparing the returns on two portfolios for a 10-year period. Portfolio 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 consists of more dividend-paying stocks 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. |
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Multinational Business Finance
Authors: David K. Eiteman, Arthur I. Stonehill, Michael H. Moffett
15th edition
134796551, 134796550, 978-0134796550
