A more risky stock has a higher A. Expected return B. Standard deviation C. Vari

Question

A more risky stock has a higher

A.  Expected return

B.  Standard deviation

C.  Variance

D.  B and C

Which of the statements below is NOT correct?

A.  If two investment have the same expected return, the investment with the lower risk is preferred.

B.  If two investment have the same expected return,the investment with the  greater risk is preferred.

C.  If two investments  have the same expected risk, the investment  with the higher expected return is preferred.

D.  If one investment has a higher expected return and a greater level of risk than another, it's is not clear which investment is the preferred choice.

Explanation / Answer

A more risky stock has a higher

A. Expected return

Which of the statements below is NOT correct?

B. If two investment have the same expected return,the investment with the greater risk is preferred.

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