The Higher the Standard Deviation of a Stock The

question 157

Multiple Choice

The higher the standard deviation of a stock the:

• A) Greater the probability of losing more than 50% of your investment in any one year.
• B) Lower the risk premium given a normal market.
• C) Lower the volatility level over a period of time.
• D) Narrower the bell curve and the smaller the probability ranges.
• E) Greater the probability that the actual return for any one year will equal the average historical return.

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Definitions:

Genital Herpes

A sexually transmitted infection caused by the herpes simplex virus, characterized by painful blisters and sores on the genital area.

Incurable

Refers to a medical condition or disease that cannot be fully cured or eradicated.

Contagious

Refers to a disease or condition that is easily transmitted from one person to another.

Early Sexual Activity

Early sexual activity refers to engaging in sexual behaviors at a younger age than what is typically considered appropriate, which can have various health and social implications.