Investment a May Have a Higher Standard Deviation Than Investment

question 9

True/False

Investment A may have a higher standard deviation than investment B and still have less risk.

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Definitions:

Recency Effect

The tendency to remember the most recently presented information better than information presented earlier.

Primacy Effect

A cognitive bias that results in a person remembering information presented at the beginning of a list better than information in the middle or end.

Autobiographical Memory

A special form of episodic memory, consisting of a person’s recollections of their life experiences.

Episodic Memory

A type of long-term memory that involves recollection of specific events, situations, and experiences.