Single choice5)Given the same expected return between two securities, a rational investor would prefer the security with:More expected riskLess expected riskRisk is not a relevant factor when considering securities

Which statement is correct regarding the following information? - Shares in company A have an expected return of 8%, standard deviation of 15%  and beta coefficient of 1.3- Shares in company B have an expected return of 12%, standard deviation of 25% and beta coefficient of -0.75.Group of answer choicesIn a single asset portfolio, security A would be riskier because its coefficient of variation is higher than security B.In a single asset portfolio, security B would be riskier because its coefficient of variation is higher than security ASecurity A is less risky if held in a diversified portfolio because of its positive correlation with market portfolioSecurity B is riskier if held in a diversified portfolio because of its beta coefficient of –0.75None of the options is correct.

Consider four different financial products you can invest in: 1. A 12-month certificate of deposit that earns 2% annual interest. 2. A par 1-year risk-free bond with a 2% annual coupon. 3. A par 1-year risky bond with a 3.5% annual coupon. 4. A $100 per share value stock that typically pays a 2–4% dividend annually. Question 3 Which of these has the highest expected return? State at least 2 reasons WHY you selected one or more securities OR why you did NOT select the other one/ones.

In an efficient market, a security's price fully reflects which of the following?Group of answer choicesThe expected capital gain of the securityThe equilibrium return of the securityOnly insider informationThe opinions of financial analysts

Stocks that have more risk should have a higher expected return:Group of answer choicesbased on total riskprimarily based on unsystematic riskprimarily based on systematic risk

Multiple Choice QuestionWhich type of investment often returns more than other investment alternatives like bonds, yet it is also more risky?Multiple choice question.stockscertificates of depositbondslife insurance