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:

Endorphins

Natural chemicals produced by the body to relieve stress and pain, often associated with feelings of pleasure or euphoria.

Nervous System

The network of nerve cells and fibers that transmits nerve impulses between parts of the body, enabling communication and coordination.

Opiates

A group of drugs derived from opium that are used for their analgesic (pain relief) properties, but are also highly addictive.

Electrical Activity

The movement of electrically charged particles, such as electrons, which is fundamental to the operation of electronic devices and biological systems like the human brain.