Which one of these stocks is most apt to have the highest (least negative)rate of return assuming that each stock has a negative total return for the period?
A)High-dividend,high standard deviation stock
B)No dividend,high standard deviation stock
C)High-dividend,low standard deviation stock
D)Low-dividend,high standard deviation stock
E)Low-dividend,low standard deviation stock

Question

Quizplus · Accepted Answer

A high-dividend, low standard deviation stock is typically seen as a defensive stock, meaning its price tends to hold up relatively well during market downturns. Its high dividend yield can also provide some level of income to the investor even if the stock price declines. On the other hand, a high standard deviation stock is typically more volatile and therefore more likely to experience larger losses during market downturns. Therefore, a combination of high dividend payout and low standard deviation is more likely to provide the least negative total return under negative market conditions.

Which One of These Stocks Is Most Apt to Have