Question

1. Which of the following is the least volatile investment and why?

   Year	Supertech Return	Hyperdrive Return
   2016	-0.2	0.05
   2017	0.5	0.09
   2018	0.3	-0.12
   2019	0.1	0.2

   	a.	Hyperdrive, it has a higher standard deviation
   	b.	Supertech, it has a higher standard deviation
   	c.	Supertech, it has a lower standard deviation
   	d.	Hyperdrive, it has a lower standard deviation

Answer 1

Correct Answer is option D

	Supertech return	Hyperdrive return
2016	-0.2	0.05
2017	0.5	0.09
2018	0.3	-0.12
2019	0.1	0.2
Volatility	0.3	0.132790562

To calculate volatility in excel by formula-
=STDEV(number1,number2....)

Higher the Standard deviation, higher the volatility.
IF the stock return has the High SD it means they stockk are the more volatile, they can move upward or downward more frequently as compared to other sdtocks. If we hace to invest in these stock we have to face the more risk as compared to low volatile stocks, beacuse if its downfall we have to suufer alots of loss as compared to if we have invest in the low volatile stock.

I hope this clear your doubt.

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