The Larger an Investment's Standard Deviation, the Smaller Is the Element

question 12

True/False

The larger an investment's standard deviation, the smaller is the element of risk.​

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Definitions:

Irrational Conclusions

Beliefs or judgments not based on rational analysis or evidence, often leading to negative thinking patterns.

Awfulizing

The cognitive distortion involving the exaggeration of the negativity of an event or situation.

Always-and-never Thinking

A cognitive distortion characterized by seeing things in black-and-white categories without middle ground.

Negative Self-talk

The practice of making critical or detrimental comments to oneself, often undermining one’s own self-esteem or confidence.