Which of the Following Statements Is/are True About the Variance

question 221

Multiple Choice

Which of the following statements is/are true about the variance of the possible future returns on a financial asset?

• A) The standard deviation of the possible returns on an asset is equal to the square root of the variance of the possible returns.
• B) Low-variance securities are high-standard deviation securities.
• C) The variance and the standard deviation of the possible returns on a risk-free asset are negative.
• D) Standard deviation of returns can be computed without considering probabilities, but variance cannot.
• E) All else equal, assets with high average returns will also have high standard deviations relative to those with lower returns.

---

Definitions:

Nonblanchable Erythema

Reddening of the skin that does not lighten or turn white (blanch) when pressure is applied, often indicating stage I pressure injury.

Granulation Tissue

New vascular tissue formed on the surface of a healing wound, indicating the process of healing.

Abdominal Aortic Aneurysm

The enlargement or ballooning of the abdominal portion of the aorta, the major blood vessel supplying blood to the body, which can lead to rupture if untreated.

Abdominal Binder

A medical garment that provides support to the abdomen, typically used after surgery or during recovery from injuries.