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The Standard Deviation of the Stock a Is Twice as High

Question 24

Multiple Choice

The standard deviation of the stock A is twice as high as the stock B Which of the following statements is the most correct?


A) in bull markets their returns will probably be the same
B) in bull market stock A will probably produce a higher return
C) in bear market stock B will probably decline more than stock A
D) in flat market stock B will probably outperform S&P 500

Correct Answer:

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