Which Statement Is True

question 17

Multiple Choice

Which statement is true?

• A) The larger the standard deviation, the lower the total risk.
• B) The larger the standard deviation, the higher the total risk.
• C) The larger the standard deviation, the more portfolio risk.
• D) The standard deviation is not an indication of total risk.

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Definitions:

Attendance

Refers to the measure of presence or participation in prescribed activities or environments.

Number

A number is a mathematical object used to count, measure, and label; fundamental in mathematics for various operations and analyses.

Persons

Human beings considered individually or collectively, often used in legal and formal contexts to refer to individuals.

Long-Run Equilibrium

A state in economic models where all factors of production can be adjusted, and no economic forces are prompting change, resulting in stable prices, output, and resource allocation.