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.

---

Definitions:

Under Stress

The state of experiencing tension, pressure, or strain, which can affect an individual's mental and physical health.

Seek Out

The act of actively looking for or attempting to find something or someone.

Closest In Proximity

Refers to the physical or relational closeness of objects, individuals, or concepts, denoting minimal distance or the closest position relative to a point of reference.

Cognitive View

An approach or perspective that focuses on the mental processes involved in knowing, perceiving, and thinking.