Assume that Home Afrika stock has an expected return of 15%, a required rate of return (RRR) of 12%, and a coefficient of variation of 4.5. On the other hand, Centum stock has an expected return of 17%, a required rate of return of 11% and a coefficient of variation of 3. Which stock is riskier for an investor?
Assume that Home Afrika stock has an expected return of 15%, a required rate of return (RRR) of 12%, and a coefficient of variation of 4.5. On the other hand, Centum stock has an expected return of 17%, a required rate of return of 11% and a coefficient of variation of 3. Which stock is riskier for an investor?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Assume that Home Afrika stock has an expected return of 15%, a required
Which stock is riskier for an investor?
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