Which of the Following Statements About the Standard Deviation Are

question 109

Multiple Choice

Which of the following statements about the standard deviation are correct?
I. The standard deviation is a measure of relative dispersion.
II. Standard deviations should be in considered in conjunction with expected returns to compare investments.
III. The standard deviation is calculated by taking the square root of the variance.
IV. The higher the standard deviation of an investment, the lower its risk.

• A) I and IV only
• B) II and III only
• C) I, III and IV only
• D) I, II and III only

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Definitions:

Degree Of Income Inequality

A metric that measures the distribution of income within a population, indicating the gap between the wealthiest and the poorest.

Income Concept

An economic term referring to the sum of all earnings and other benefits received by an individual or entity, typically measured over a specified time period.

Income Inequality

The skewed allocation of financial resources among individuals or households within an economic setting.

Discrimination

Unequal treatment or bias against individuals or groups based on characteristics such as race, gender, religion, or nationality.