Question

uestion 30

46) Suppose that you find National Vision Inc. (Ticker: EYE) has the widest dispersion of returns compared to the others in your portfolio. Then National Vision Inc. (EYE) should have the:

		lowest expected rate of return.
		highest standard deviation.
		lowest real rate of return.
		lowest variance.

Answer 1

Widest dispersion of Return In the portfolio will mean that the stock will be having a higher standard deviation because the rate of the fluctuation of the return will be higher as the variances will be higher.

when the stock will be having the widest dispersion it will be having many possible values for return on investment and it will have the highest standard deviation as well.

Other options are false because they are not stating the correct fact.

Correct answer will be option (B) highest standard deviation.