If the Standard Deviation of Returns from an Investment Is

question 16

Multiple Choice

If the standard deviation of returns from an investment is zero, then:

• A)the risk associated with the investment is more than that of the investments that provide risk-free return.
• B)the expected return from the investment is higher than that of those investments whose standard deviation is greater than zero.
• C)the scatter of the possible outcome from the investment is high and its investors demand higher return.
• D)the scatter of the possible outcome from the investment is low and its investors demand higher return.
• E)there is no risk associated with the investment; that is, the investment is risk free, because there is only one possible payoff.

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Definitions:

Psychosocial Stages

A theory proposed by Erik Erikson that describes eight stages through which a healthily developing human should pass from infancy to late adulthood, each marked by a psychological crisis.

Development

The process of growth or progression through successive phases, typically used in the context of physical, psychological, or social changes over time.

Neurotic Needs

Psychological needs that arise from attempts to manage stress and anxiety, often leading to unhealthy or maladaptive behaviors.

Animus

In Jungian psychology, the animus represents the masculine aspect of a woman's unconscious mind, as opposed to anima, which represents femininity in men.