What Can You Conclude If the Standard Deviation of Returns

question 3

Multiple Choice

What can you conclude if the standard deviation of returns from Project X is smaller than the standard deviation of returns from Project Y?

• A) The expected returns from Project X are less predictable.
• B) Past returns from Project X are smaller.
• C) Returns from Project X are larger.
• D) The expected returns from Project X are easier to estimate.

---

Definitions:

Organization

A structured group of individuals working together to achieve a set of objectives or goals.

Beliefs

Represent personal or collective convictions and attitudes about what is true, real, or valued.

Followers

Individuals who are led by others, particularly in a workplace or organizational setting.

Leaders

Individuals who guide, direct, or influence others in a group or organization toward achieving defined goals.