P8-2 Risk versus Return Rank the following three stocks by their risk-return relationship, best to worst. Middle Road has an average return of 15 percent and standard deviation of 33 percent. The average return and standard deviation of Play Safe are 10 percent and 20 percent, respectively; and for Risk Taker are 22 percent and 55 percent.
P8-2 Risk versus Return Rank the following three stocks by their risk-return relationship, best to worst. Middle Road has an average return of 15 percent and standard deviation of 33 percent. The average return and standard deviation of Play Safe are 10 percent and 20 percent, respectively; and for Risk Taker are 22 percent and 55 percent.
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
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Transcribed Image Text:P8-2 Risk versus Return Rank the following three stocks by their risk-return
relationship, best to worst. Middle Road has an average return of 15 percent and
standard deviation of 33 percent. The average return and standard deviation of Play
Safe are 10 percent and 20 percent, respectively; and for Risk Taker are 22 percent and
55 percent.
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