If a Financial Asset Has a Historical Variance of 4

question 115

True/False

If a financial asset has a historical variance of 4% squared,then its standard deviation must be 16%.

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Definitions:

Physiological Responses

Physical reactions of the body to internal or external stimuli, such as changes in heart rate or hormone levels.

Vulnerable

Exposed to the possibility of being attacked or harmed, either physically or emotionally.

Stress

A physical, mental, or emotional factor that causes bodily or mental tension and may be a factor in disease causation.

High Level of Arousal

A state of heightened physiological activity, including increased alertness, heart rate, and sensory sensitivity.