Over the past 5 years, a stock produced returns of 23 percent, -39 percent, 4 percent, and 16 percent, and -12 percent. Based on these 5 years, which of the following is true? Group of answer choices Average return is higher than standard deviation. Average return is equal to standard deviation. Average return is lower than standard deviation. Both average return and standard deviation are positive. Both average return and standard deviation are negative.
Over the past 5 years, a stock produced returns of 23 percent, -39 percent, 4 percent, and 16 percent, and -12 percent. Based on these 5 years, which of the following is true? Group of answer choices Average return is higher than standard deviation. Average return is equal to standard deviation. Average return is lower than standard deviation. Both average return and standard deviation are positive. Both average return and standard deviation are negative.
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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Over the past 5 years, a stock produced returns of 23 percent, -39 percent, 4 percent, and 16 percent, and -12 percent. Based on these 5 years, which of the following is true?
Group of answer choices
Average return is higher than standard deviation.
Average return is equal to standard deviation.
Average return is lower than standard deviation.
Both average return and standard deviation are positive.
Both average return and standard deviation are negative.
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