Stocks with Large Standard Deviations Have__________probability Distributions

question 22

Multiple Choice

Stocks with large standard deviations have__________probability distributions.

• A) skinner
• B) flatter
• C) taller
• D) thinner

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Definitions:

Covariance

A statistical measure that indicates the degree to which two variables change together.

Standard Deviation

A statistical measurement that depicts the variability or volatility of an investment's returns.

EAFE Index

The Europe, Australasia, Far East index is a widely used index of non-U.S. stocks.

Weighting

The process of assigning different levels of importance or emphasis to various elements in a calculation or analysis.