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If the Expected Return Is 10%, the Standard Deviation Is

question 73

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If the expected return is 10%, the standard deviation is 3%, about 68% of the time returns will be expected to fall between 10% and 13%.


Definitions:

Immediate Benefits

Advantages or gains that can be realized in the near term without significant delay.

Distant Future

A period of time that is significantly far ahead from the present moment.

Logrolling

In politics, the practice of exchanging favors, especially in legislative bodies, by reciprocal voting for each other's proposed legislation.

Special Interest Groups

Organizations that advocate for the particular interests of their members, often in political and policy-making contexts.

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