The Higher the Standard Deviation of a Stock The

question 157

Multiple Choice

The higher the standard deviation of a stock the:

• A) Greater the probability of losing more than 50% of your investment in any one year.
• B) Lower the risk premium given a normal market.
• C) Lower the volatility level over a period of time.
• D) Narrower the bell curve and the smaller the probability ranges.
• E) Greater the probability that the actual return for any one year will equal the average historical return.

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Definitions:

Ending Inventory

The value of goods available for sale at the end of an accounting period. It is the beginning inventory plus purchases minus the cost of goods sold.

FIFO

"First In, First Out," a method used in inventory management and accounting where the oldest inventory items are sold or used first.

Net Income

Signifies the net income of a corporation following the subtraction of all costs and tax obligations from the overall revenue.

Inventory Turnover

A measure showing the frequency at which a company's inventory is sold and replenished within a given timeframe.