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Question 15 Over the past 5 years, a stock produced returns of 23 percent, -39 percent,...

Question 15

Over the past 5 years, a stock produced returns of 23 percent, -39 percent, 4 percent, and 16 percent, and -12 percent. Based on these 5 years, which of the following is true?

Group of answer choices

Average return is higher than standard deviation.

Average return is equal to standard deviation.

Average return is lower than standard deviation.

Both average return and standard deviation are positive.

Both average return and standard deviation are negative.

Homework Answers

Answer #1

Answer:- Average return is lower than standard deviation.

( Average return = -1.6% and Standard deviation = 22.1504%)

Explanation:-

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