Samples That Have a Large Standard Deviation Will Also Have

question 29

Multiple Choice

Samples that have a large standard deviation will also have which of the following?

• A) A positive skew
• B) A negative skew
• C) A large variance
• D) A small margin of error

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Definitions:

Beta

An indicator of how much a stock's price is expected to fluctuate, compared to fluctuations in the overall stock market.

Required Rate of Return

The minimum annual percentage return an investor expects to earn from an investment to consider it worthwhile.

Portfolio

A collection of financial investments like stocks, bonds, commodities, cash, and cash equivalents, including mutual, exchange-traded, and closed funds.

Market Risk Premium

The additional yield investors anticipate from maintaining a portfolio with inherent market risk rather than opting for assets free of risk.