How does one answer this potential interview question? It's not a very clear question since there are clearly many factors.
My first guess would be to talk about looking at the expected (mean) return of the stock - is it increasing or decreasing in recent years. Could also then examine the volatility of this stock - using variance/standard deviation, we can see how reliable these returns have been over previous years. We could also use something like the Sharpe ratio to see how sensitive it is to fluctuations in volatility.
We could also look at its beta (or Treynor ratio) to see how sensitive it is to market risk.
We wouldn't want to look at things like Delta since this is to do with derivatives and not the underlying stock.
Are my ideas above correct? Is there anything important I have overlooked?