The Standard Deviation of a Stock's Monthly Returns Measures the Degree

question 62

True/False

The standard deviation of a stock's monthly returns measures the degree of volatility of a stock's returns over time and can be a method of evaluating a stock's future risk.

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Definitions:

Convergence

A term that refers to the coming together of two or more things; in a physiological context, it describes the inward movement of the eyes toward each other when focusing on a close object.

Closure

The psychological tendency to seek a coherent and logical ending to an open issue or incomplete task.

Interposition

A visual cue for depth perception that occurs when one object partly blocks another; it can provide information about the relative positions and distances of objects in space.

Bottom-Up Processing

Information processing in which individual components or bits of data are combined until a complete perception is formed.