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4 October, 09:57

As an investor and based on your understanding of risk, which of the following statements is true?

(A) You should invest in a stock if the expected rate of return on an asset with similar risk is higher than the expected rate of return from the stock.

(B) You should invest in a stock if the expected rate of return from the stock is greater than the expected rate of return on an asset with a similar risk.

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  1. 4 October, 10:16
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    Answer: B. You should invest in a stock if the expected rate of return from the stock is greater than the expected rate of return on an asset with a similar risk.
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