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Stock A has a standard deviation of 20% whereas Stock B has a standard deviation of 30%.
Which of the following statements is true? Stock A is riskier than Stock B. Both stocks have the
same amount of risk. Stock B is expected to earn lower returns than Stock A. Stock B is riskier
than Stock A.

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Stock A has a standard deviation of 20 whereas Stock B has a standar.pdf

  • 1. Stock A has a standard deviation of 20% whereas Stock B has a standard deviation of 30%. Which of the following statements is true? Stock A is riskier than Stock B. Both stocks have the same amount of risk. Stock B is expected to earn lower returns than Stock A. Stock B is riskier than Stock A.