The Tighter the Probability Distribution of Its Expected Future Returns

question 81

True/False

The tighter the probability distribution of its expected future returns, the greater the risk of a given investment as measured by its standard deviation.

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Definitions:

Operating Cash Flow

Cash generated by a company's normal business operations, indicating its ability to generate enough cash to maintain or expand operations.

Current Liabilities

Financial obligations a company needs to settle within one year.

Note Payable

A financial obligation represented by a written promissory note which specifies the amount and terms under which the money must be repaid.

Net Working Capital

A financial metric representing the difference between a company's current assets and current liabilities.