If the Variance for Stock a Is Greater Than the Variance

question 118

Multiple Choice

If the variance for Stock A is greater than the variance for Stock B, then the standard deviation for Stock A:

• A) is greater than the standard deviation for Stock B
• B) is less than the standard deviation for Stock B
• C) is the same as the standard deviation for stock b
• D) cannot be determined by this information

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Definitions:

Competitors

Companies or individuals that engage in rivalry to offer goods or services in the same market, trying to achieve greater sales or market share.

Dominant Firm

Firm with a large share of total sales that sets price to maximize profits, taking into account the supply response of smaller firms.

Demand Curve

Illustrates the relationship between the price of a good or service and the quantity demanded by consumers, typically showing a downward slope.

Fringe Firms

Small companies that operate at the edges of a market, often providing alternative or innovative products compared to mainstream companies.