Question

. Financial analysts like to use variation as a measure of risk for a stock. The greater the
deviation in a stock price over time, the more risky it is to invest in the stock. Suppose stock
X costs an average of Rs. 32.00 per share and showed a standard deviation of Rs. 3.45 for the
past 60 days. Suppose stock Y costs an average of Rs. 84.00 per share and showed a standard
deviation of Rs. 5.40 for the past 60 days. Which stock is riskier to invest?​

Answer 1

Answer:

Financial analysts like to use the standard deviation as a measure of risk for a stock. The greater the deviation in a stock price over time, the more risky it is to invest in the stock.

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