The expected rate of return and standard deviations, respectively for four shares are given below: Which share is clearly least desirable? $$\begin{array} { l }
\mathrm { ABC } \quad 9 \% , 3 \% \
\text { CDE } \quad 11 \% , 9 \% \
\text { FGH }\quad 12 \% , 8 \% \
\text { IJK } \quad 14 \% , 10 \% \
\end{array}$$
Which share is clearly least desirable?
A) FGH.
B) IJK.
C) CDE.
D) ABC.

Question

The expected rate of return and standard deviations, respectively for four shares are given below: Which share is clearly least desirable? $$\begin{array} { l } 
\mathrm { ABC } \quad 9 \% , 3 \% \
\text { CDE } \quad 11 \% , 9 \% \
\text { FGH }\quad 12 \% , 8 \% \
\text { IJK } \quad 14 \% , 10 \% \
\end{array}$$
Which share is clearly least desirable?
A) FGH.
B) IJK.
C) CDE.
D) ABC.

Quizplus · Accepted Answer

CDE has a relatively low expected return of 11% with a high standard deviation of 9%, indicating higher risk without a proportionate return, making it the least desirable.

The Expected Rate of Return and Standard Deviations, Respectively for Four