The expected rate of return and standard deviations, respectively for four stocks are given below:
OPQ 11%, 8%
RST 11%, 9%
UVW 12%, 10%
XYZ 12%, 8%
Which stock is clearly most desirable?
A)OPQ
B)RST
C)UVW
D)XYZ

Question

Quizplus · Accepted Answer

Stock XYZ has the highest expected rate of return (12%) with the lowest standard deviation (8%), indicating it offers the best risk-return trade-off among the options.

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