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.

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Definitions:

Understory

The layer of vegetation in a forest that grows at a lower height than the forest canopy, consisting of small trees, shrubs, and groundcover plants.

Tropical Desert

A hot, dry biome found near the equator, characterized by sparse rainfall, extreme temperatures, and limited vegetation and wildlife.

Low Productivity

A condition where there is an inefficient level of output per input, such as labor or resources.

Humid Conditions

Environmental circumstances characterized by high levels of moisture in the air.