Standard Deviation Is a Measure of Which One of the Following

question 76

Multiple Choice

Standard deviation is a measure of which one of the following?

• A) Average rate of return
• B) Volatility
• C) Probability
• D) Risk premium
• E) Real returns

---

Definitions:

International Bonds

Bonds issued in a country by a non-domestic entity, allowing the issuer to access foreign capital.

Uncovered Interest Parity

A financial theory that posits that the difference in interest rates between two countries is equal to the expected change in exchange rates between their currencies.

Exchange Rate Risk

The potential for losses due to fluctuation in the exchange rate between two currencies in international transactions.

Foreign Exchange Market

A global marketplace for trading currencies against each other, determining the exchange rate values between different currencies.