If the Dispersion Around a Stock's Return Increases

question 44

Multiple Choice

If the dispersion around a stock's return increases

• A)the expected return decreases
• B)the standard deviation decreases
• C)the stock's price increases
• D)the stock's risk increases

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Definitions:

Batholith

A large mass of intrusive igneous rock believed to have solidified deep within the earth.

Sheetlike

Having a thin, broad shape resembling a sheet, often used to describe geological formations or layers.

Magma Chambers

Underground pools of molten rock located beneath the Earth's surface, which can feed volcanoes during eruptions.

Tectonic Settings

The environmental and geological conditions that relate to the movement and interaction of Earth's tectonic plates.