Richard has two investment opportunities.He can invest in The Sunglasses Company or The Umbrella Company.What is the expected return and standard deviation of each company?
A)The expected return for each company is 12.50% and the standard deviation for each company is 0.00%.
B)The expected return for each company is 12.50% and the standard deviation for each company is 12.50%.
C)The expected return for each company is 12.50% and the standard deviation for each company is 156.25%.
D)The expected return for each company is 12.50% and the standard deviation for each company is 25.00%.

Question

Richard has two investment opportunities.He can invest in The Sunglasses Company or The Umbrella Company.What is the expected return and standard deviation of each company? 
A)The expected return for each company is 12.50% and the standard deviation for each company is 0.00%. 
B)The expected return for each company is 12.50% and the standard deviation for each company is 12.50%. 
C)The expected return for each company is 12.50% and the standard deviation for each company is 156.25%. 
D)The expected return for each company is 12.50% and the standard deviation for each company is 25.00%.

Quizplus · Accepted Answer

The Answer of Richard has two investment opportunities.He can invest in The Sunglasses Company or The Umbrella Company.What is the expected return and standard deviation of each company? 
A)The expected return for each company is 12.50% and the standard deviation for each company is 0.00%. 
B)The expected return for each company is 12.50% and the standard deviation for each company is 12.50%. 
C)The expected return for each company is 12.50% and the standard deviation for each company is 156.25%. 
D)The expected return for each company is 12.50% and the standard deviation for each company is 25.00%.

Richard Has Two Investment Opportunities