The expected rate of return for the stock of CornhuskerEnterprises is 20%, with

Question

The expected rate of return for the stock of CornhuskerEnterprises is 20%, with a standard deviation of 15%. Theexpected rate of return for the stock of Mustang Associates is 10%,with a standard deviation of 9% a) which stock would you consider to be riskier? why? The expected rate of return for the stock of CornhuskerEnterprises is 20%, with a standard deviation of 15%. Theexpected rate of return for the stock of Mustang Associates is 10%,with a standard deviation of 9% a) which stock would you consider to be riskier? why?

Explanation / Answer

Cornhusker Enterprises is riskier because its standard deviation is higher than that of Mustang Associates. Generally, standard deviation is a measure of the total risk of a stock.

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---