Which stock is riskier and why

Reference no: EM131933298

Question: The annual standard deviation of return on Stock A's equity is 37% and the correlation coefficient of these returns, with those on a well diversified portfolio, is 0.62. Comparable numbers of Stock B are 14% and 0.94. Which stock is riskier and why? The response must be typed, single spaced, must be in times new roman font (size 12) and must follow the APA format.

Reference no: EM131933298

Questions Cloud

What would be the net operating income : What is the contribution margin per unit? Assume that the amounts of the company's total variable expenses and total fixed expenses were reversed.

What is the average number of customers physically inside : Before the customer can get their oil changed, they first meet with the manager to get all needed information, averaging 1 minute for this process.

Analyze the influences of social institutions : Identify geographic factors (climate, terrain, waterways) that could influence - positively or negatively - your business activities in the country.

How many pounds of beef should joe cook for the next day : Daily demand for the beef can be approximated by a normal distribution with a mean of 290 pounds and a standard deviation of 30 pounds.

Which stock is riskier and why : The annual standard deviation of return on Stock A's equity is 37% and the correlation coefficient of these returns, with those on a well diversified portfolio.

Outsourcing aspects of the product or service : Detail and elaborate on the criteria or factors an organization should consider prior to outsourcing aspects of the product or service they produce

What us tge degree of operating leverage : What us tge degree of operating leverage? What is the estimated percent increase in net operating income of a 5% increase in sales?

When is an agent entitled to delegate performance duties : When is a third party not bound by a contract with an undisclosed principal? When is an agent entitled to delegate performance duties?

Find the quantity of cartons per year : Assuming that the price per carton is $17.80, find the quantity of cartons per year you need to supply to break even.

User Account

All Pages