Question
In: Statistics and Probability
1.5 Assume portfolio A has a collection of stocks that average a 12% return with a...
1.5 Assume portfolio A has a collection of stocks that average a 12% return with a standard deviation of 3% and portfolio B has an average return of 6% with a standard deviation of 2%. Which portfolio among the two assets would be considered riskier?
2 points
None is these answers is correct
Portfolio A
Portfolio B
Both Portfolio A and B
Solutions
Expert Solution
Q: Assume portfolio A has a collection of stocks that average a 12% return with a standard deviation of 3% and portfolio B has an average return of 6% with a standard deviation of 2%.Which portfolio among the two assets would be considered riskier?
Answer: Portfolio B.
Explanation
Given that σa=3 x̅a=12 and σb=2, x̅b=6.
orchestra answered 2 years agoRelated Solutions
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