Which of the Following Statements Is (Are) TRUE

question 6

Multiple Choice

Which of the following statements is (are) TRUE?

• A) I, II, and III
• B) II and III
• C) I and III
• D) I

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Definitions:

Standard Deviation

A statistical measure that quantifies the dispersion or variability of a set of data points or investment returns from their mean.

Returns

The profit or loss on an investment over a specified period of time, often expressed as a percentage of the investment's initial cost.

Market Risk Premium

The additional return expected by investors for taking on the higher risk of investing in the stock market over risk-free securities.

Dividend

A part of a company's profits distributed to its shareholders, typically every three months.