Determine whether which stock is riskier


Question:

Common stock A has an expected return of 10%, a standard deviation of future returns of 25%, and a beta of 1.25. Common stock B has an expected return of 12%, a standard deviation of future returns of 15%, and a beta of 1.50. Which stock is riskier. Explain.

Solution Preview :

Prepared by a verified Expert
Finance Basics: Determine whether which stock is riskier
Reference No:- TGS02074152

Now Priced at $20 (50% Discount)

Recommended (90%)

Rated (4.3/5)