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    Introduction to Corporate Finance
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    Exam 4: The Trade-Off Between Risk and Return
  5. Question
    Bavarian Sausage Stock Has an Average Historical Return of 16
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Bavarian Sausage Stock Has an Average Historical Return of 16

Question 2

Question 2

Multiple Choice

Bavarian Sausage stock has an average historical return of 16.3% and a standard deviation of 5.3%. In which range do you expect the returns of Bavarian Sausage 68% of the time.


A) 5.7%:26.9%
B) 5.3%:16.3%
C) 11.0%:21.6%
D) 6.2%:18.5%

Correct Answer:

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