Which set of characteristics should you prefer in a stock if you desire the highest (least negative)rate of return assuming that you will earn a negative total return for the period?
A)High-dividend,high standard deviation
B)No dividend,high standard deviation
C)High-dividend,low standard deviation
D)Low-dividend,high standard deviation
E)Low-dividend,low standard deviation

Question

Quizplus · Accepted Answer

When assuming a negative total return for the period, the high dividend yield can offset some of the losses. Additionally, a low standard deviation indicates that the stock's returns are less volatile, which can provide some stability in a downturn. Therefore, a high-dividend, low-standard deviation stock is the best choice for the desired outcome.

Which Set of Characteristics Should You Prefer in a Stock