Solved

You Own a Stock That Will Produce Varying Rates of Return

Question 17

Multiple Choice

You own a stock that will produce varying rates of return based upon the state of the economy.Which one of the following will measure the risk associated with owning that stock?


A) weighted average return given the multiple states of the economy
B) rate of return for a given economic state
C) variance of the returns given the multiple states of the economy
D) correlation between the returns give the various states of the economy
E) correlation of the weighted average return as compared to the market

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions