The expected rate of return for 3COM is 18 percent, with a standard deviation of 10.98 percent. The expected rate of return for Just the Fax is 26 percent with a standard deviation of 15.86%. Which firm would be considered the riskier from a total risk perspective?
A)3COM
B)Just the Fax
C)Neither, both have the same risk in a relative sense.
D)Cannot be determined

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The Answer of The expected rate of return for 3COM is 18 percent, with a standard deviation of 10.98 percent. The expected rate of return for Just the Fax is 26 percent with a standard deviation of 15.86%. Which firm would be considered the riskier from a total risk perspective?
A)3COM
B)Just the Fax
C)Neither, both have the same risk in a relative sense.
D)Cannot be determined

The Expected Rate of Return for 3COM Is 18 Percent