How Is the Return to Risk Described in Financial Statistics

question 75

Multiple Choice

How is the return to risk described in financial statistics?

• A) as the relative measure of the distance an observation is from the mean
• B) as the reciprocal of coefficient of variation
• C) as the square root of variance
• D) as the ratio of excess returns to its standard deviation

---

Definitions:

Lowest Score

Refers to the smallest value or number in a data set.

Range

The difference between the highest and lowest scores in a dataset.

Variability

The extent to which data points in a set differ from each other and from their average, or the degree of dispersion within the dataset.

Standard Deviation

A measure of the amount of variation or dispersion of a set of values.