Stocks A, B, C, and D have standard deviations, respectively, of 20%, 5%, 10%, and 15%. Which one is the riskiest?A.Stock

Question

Nina [5.8K]

3 years ago

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Stocks A, B, C, and D have standard deviations, respectively, of 20%, 5%, 10%, and 15%. Which one is the riskiest?A.Stock

AB.Stock BC.Stock CD.Stock D

Business

1 answer:

Serggg [28] · Answer 1 · 2022-03-05T07:17:54+03:00

The Stock A is the riskiest of all the available stock.

Explanation:

Risk perception of the stock is a very important component of the investment industry.

Standard deviation is the most common parameter to evaluate the risk parameter of any stock. It helps an investor in assessing the volatility of the stock and market.

Higher the price more is the volatility and higher would be a standard deviation. A lower price would eventually translate into low standard deviation.

However, it is to be remembered that the standard deviation is not the only measure of risk perception of the stock.

Stocks​ A, B,​ C, and D have standard​ deviations, respectively, of​ 20%, 5%,​ 10%, and​ 15%. Which one is the​ riskiest?A.Stock

Stocks A, B, C, and D have standard deviations, respectively, of 20%, 5%, 10%, and 15%. Which one is the riskiest?A.Stock