Which of the Following Is True Concerning the Standard Deviation

question 6

Multiple Choice

Which of the following is true concerning the standard deviation of a distribution?

• A) A small standard deviation indicates a narrow clustering of values around a mean
• B) A small standard deviation indicates a larger spread of values around the mean
• C) A large standard deviation indicates a narrow clustering of values around the mean
• D) A large standard deviation means that a lot of people answered a particular question.

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Definitions:

Capital Gains Yield

The change in the price of a security or investment over a specified period, excluding dividends, expressed as a percentage of the investment's initial price.

Total Return

The overall return on an investment over a specific time period, including both capital gains and dividends or interest, expressed as a percentage of the investment's initial cost.

Real Rate

The interest rate adjusted for inflation, reflecting the true return on an investment over time.

Dividend

A portion of a company's earnings that is distributed to shareholders, usually in the form of cash payments or additional shares.