Question

Preferred stockholders have voting rights True False As the volatility of an investment increases, the standard...

Preferred stockholders have voting rights

True

False

As the volatility of an investment increases, the standard deviation of that investment increases as well.

True

False

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Answer #1

1. The given statement is FALSE because preference shareholders will be having No or Limited voting rights, which should only be applied in the exceptional cases and hence it can be said that they do not have the voting rights because they are not allowed to vote in the general meetings of the company.

The given statement is FALSE

2. The given statement is FALSE because when the beta will increase the volatility will increase, but it is not guaranteed that standard deviation will increase as well.

so,the given statement is FALSE because it can sometime increase or sometime decrease also with the increase in volatility.

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